Colstay Private Limited, the operator of the student co-living accommodation brand The Hive Hostels, has raised ₹11.5 crore in a pre-IPO funding round.
The private placement round featured participation from Shriram Madhav Nene, Anmol Sood, Sahil Vachani, Managing Director and CEO of Max Estates, and Rohit Kothari’s Anchorage Capital Fund. The participation of prominent figures like angel investor Ritesh Malik and Ankit Mittal’s Sixth Sense Ventures.
This round also saw the participation of popular celebrities like Madhuri Dixit and Amrita Rao.
The company issued approximately 1.16 lakh equity shares during this round. Following this investment, Madhuri Dixit will hold a 0.44% stake in Hive Hostels, while Ankit Mittal and his family office will possess a 1.58% share.
The Hive Hostels, known for its upscale and comfortable living arrangements tailored specifically for students, is gearing up for an Initial Public Offering (IPO) slated for the second half of next year.
Kyro Capital Private Limited, led by Aman Maheshwari, served as the investment banker for The Hive Hostels during this round.
The funds raised will be used in the development of Aurus, a luxury extension of The Hive Hostels designed to offer even more exclusive and high-end student residences.
The Hive Hostels also announced its entry into a new vertical: Hive Campus Living. Hive Campus Living focus on managing in-house hostel operations for universities. By partnering directly with educational institutions, Hive Campus Living aims to streamline and elevate the quality of campus accommodations, leading to greater operational efficiency and an enhanced student experience. This new vertical will leverage The Hive Hostels’ expertise in luxury student housing to offer universities a tailored solution that integrates seamlessly with their existing infrastructure.
Founder Bharat Agarwal said, “We see a huge demand for high-quality student accommodations and are committed to meeting this need with our innovative solutions. Our upcoming IPO and the launch of Hive Campus Living are key steps in expanding our impact and enhancing the student experience.”
Prior to this funding round, The Hive Hostels had been a bootstrapped and profitable enterprise, demonstrating robust financial health and operational efficiency. The company is on track to achieve a revenue milestone of ₹60 crore for the current fiscal year, reflecting its strong market presence and successful business model.
The Hive Hostels is founded by Rohan Gupta, Roshan Bachhawat, Ayush Singh, Kautuk Mishra, Bhavesh Kalal, and Harshit Tyagi. The company’s financial performance has shown notable improvement, with a turnover of Rs 40.73 crore and a profit after tax (PAT) of Rs 1.46 crore for FY24. This is a significant increase from FY23, where revenue stood at Rs 29.5 crore with a PAT of Rs 65 lakh.
