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Co-Living Industry in India: Major Players & Expansion Plans
By PropertyGeld Editorial Team
Published on PropertyGeld:
Co-Living Industry in India: Major Players and Expansion Plans
Co-living has emerged as a new model of rental housing in India, particularly among students, young professionals and people who move to cities for work or education.
Unlike traditional rental housing, co-living properties are usually professionally managed and provide residents with furnished rooms along with shared facilities and services.
The sector was still developing in India in 2019, but several companies were expanding their presence across major cities.
Growth of Co-Living in India
The concept of shared accommodation had traditionally been associated with student hostels and paying-guest accommodation. However, organised co-living operators began bringing professional management, furnished rooms and additional services into this segment.
According to the historical 2019 industry estimates cited in the original report, India's organised co-living market was valued at around US$150 million, with industry experts projecting that it could reach approximately US$2 billion by 2022. This was a projection made at that time and should not be treated as a current market size.
The sector attracted startup funding as companies looked to expand their inventory and enter new cities.
Major Co-Living Companies in India
1. NestAway
NestAway, headquartered in Bengaluru, had entered the co-living segment in 2017.
By 2019, the company was operating co-living spaces across 12 cities and had around 14,000 co-living residents.
Its business model involved managing properties rather than taking them on traditional leases. The company earned a commission from the rent collected from residents.
The company had also raised funding from investors including Epiq Capital, Tiger Global Management and Goldman Sachs, among others.
2. OYO Life
OYO entered the co-living segment in 2018 under the name OYO Living, which was subsequently rebranded as OYO Life.
At the time of the original report, it had operations in cities including:
Gurugram
Bengaluru
Pune
Noida
The company was operating around 160 properties and had announced plans for significant expansion across India.
It had also explored the Japanese co-living market through a partnership with Yahoo Japan.
3. Stanza Living
Stanza Living focused primarily on student accommodation rather than targeting the broader co-living market.
In 2019, it had more than 3,000 beds across cities including:
Delhi
Noida
Bengaluru
Coimbatore
Ahmedabad
Hyderabad
The company had raised funding from investors including Sequoia Capital, Matrix Partners India and Accel Partners.
Its expansion strategy focused on cities with a strong student population.
4. Zolo
Bengaluru-based Zolo had expanded rapidly across several Indian cities.
Its operations included:
Mumbai
Delhi
Noida
Bengaluru
Coimbatore
Kota
Pune
Chennai
Gurugram
Hyderabad
The company had approximately 20,000 beds under operation at the time and had announced an ambitious target of reaching 50,000 beds by the end of 2019.
Historical funding was reported at around US$35 million, with investors including Nexus Venture Partners, IDFC Alternatives and Mirae Asset.
5. Colive
Bengaluru-based Colive was another major player in the emerging co-living sector.
The company had raised around US$12 million from investors including Salarpuria Sattva Group and Ncubate Capital Partners.
Its reported occupancy level was around 85%, and it had announced plans to expand to approximately 100,000 beds within three years. These figures represent the company's plans and performance reported in 2019.
Cities Driving Co-Living Demand
The co-living industry was particularly visible in cities with large student populations, technology companies and employment opportunities.
Major markets mentioned in the 2019 report included:
Bengaluru
Delhi
Gurugram
Noida
Mumbai
Pune
Hyderabad
Chennai
Ahmedabad
Coimbatore
Kota
These cities attracted students and working professionals who often require flexible accommodation close to colleges, offices and transport networks.
Why Co-Living Attracted Businesses
Several factors contributed to the growth of organised co-living:
Changing Lifestyle
Young professionals increasingly move between cities for employment opportunities. Furnished and managed accommodation can reduce the effort involved in setting up a home.
Student Housing Demand
Large student populations create demand for accommodation near educational institutions.
Managed Services
Co-living operators can provide services such as housekeeping, maintenance, internet and security along with accommodation.
Technology-Based Management
Digital platforms can help operators manage bookings, payments, maintenance requests and tenant communication.
Investment Interest
The growth potential of the segment attracted startup funding and encouraged operators to expand their property networks.
Challenges for the Co-Living Industry
Despite its expansion plans, the sector also faced several challenges.
Operators need to manage:
Property acquisition
Occupancy levels
Tenant turnover
Maintenance
Operating expenses
Local regulations
Property-owner relationships
Competition between operators
The success of a co-living property also depends heavily on its location and proximity to employment centres, colleges and public transportation.
Future of Co-Living in India
The historical expansion plans of major operators indicated that organised co-living was expected to become a larger part of India's rental housing market.
The business model offered an alternative between traditional apartment rentals, paying-guest accommodation and student hostels.
However, the expansion targets mentioned in the 2019 report were future projections at that time, and actual industry performance may differ significantly from those estimates.
Conclusion
Co-living was emerging as an organised rental-housing segment in India, with companies such as NestAway, OYO Life, Stanza Living, Zolo and Colive expanding their operations across multiple cities.
The sector's growth was driven by demand from students and young professionals, while technology, professional property management and startup investment helped formalise the market.
For anyone researching the Indian co-living sector, the 2019 expansion plans provide useful historical context, but current company operations, market size and investment conditions should be checked separately.
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