NestAway is one of India's biggest rental home providers for bachelors and millennials. It was founded in January 2015 in Bengaluru by Amarendra Sahu, Deepak Dhar, Jitendra Jagadev, and Smruti Parida with a vision to solve the struggles of young professionals and students in finding affordable housing when they move to a new city. The company mainly operates in major cities like Pune, Bangalore, Hyderabad,Delhi and Mumbai, with over 39,000 tenants across 10+ cities.
How NestAway Works?
NestAway follows a simple approach to rental housing:
Making Home Rentals Easy:- The platform aims to simplify house hunting by offering furnished homes and additional services, helping tenants focus on their work and aspirations instead of worrying about setting up a home.
Removing Middlemen:- Unlike traditional rentals that involve brokers, NestAway connects tenants directly with property owners, making the process more transparent and cost-effective.
Bridging the Generation Gap:- Many young migrants face discrimination while searching for homes. NestAway attempts to address this by acting as a bridge between tenants and landlords, ensuring a mutually beneficial relationship.
Affordable and Flexible Housing:- The company offers different types of accommodations based on individual needs, from shared apartments to private homes, making it accessible to a wide range of renters.
Source:- nestaway.com
NestAway’s Financial Growth, Revenue sources, funding history, and profitability analysis.
Financial Highlights:
FY 2023-24 Revenue: ₹32.77 Cr
FY 2023-24 Expenses: ₹51.25 Cr
FY 2023-24 Profit/Loss: -₹19.02 Cr
Net Cash Flow From Operations: -₹17.7 Cr
Funding Highlights:
Lead Investors:- 4
Investors:- Tiger Global, Chiratae Ventures, UCRNT Fund, Goldman Sachs
Total Funding:- $116M in 9 rounds
Latest Funding Round:- Series D, Apr 26, 2024, $576K
Post Money Valuation:- $12.9M as on Apr 26, 2024
Investors:- Tiger Global Management & 25 more
Employee Count:- 164 as on Mar 31, 2024
Similar Companies:- Zolostays & 288 more
Exit Details:- Acquired by Aurum PropTech (Jun 02, 2023) in $11M dollars'
Finance Report Conclusion: NestAway has been struggling financially, as seen in its FY 2023-24 results, where it reported a loss of ₹19.02 crore with expenses (₹51.25 Cr) far exceeding its revenue (₹32.77 Cr). Additionally, its net cash flow from operations stands at -₹17.7 Cr, indicating a liquidity crunch.
Despite raising $116 million across 9 funding rounds from investors like Tiger Global, Chiratae Ventures, Goldman Sachs, and UCRNT Fund, the company faced severe financial challenges. In April 2024, NestAway raised $576K in a Series D round, but its post-money valuation dropped to just $12.9M, a significant decline from its peak. Eventually, it was acquired by Aurum PropTech in June 2023 for just $11M, signaling a major downfall for a once-promising startup.
With an employee count of 164 and competition from firms like ZoloStays, NestAway’s future remains uncertain. The company is currently operating at a loss, and unless there is a major strategic shift, sustaining long-term profitability will be a challenge.
NestAway complaints, issues & real reviews
NestAway, a prominent rental housing platform in India, has garnered mixed reviews from its users. On platforms like MouthShut.com, it holds a rating of 4.39 out of 5, indicating a generally positive reception.
However, several common complaints have been noted:
Delayed Security Deposit Refunds: Some tenants have reported delays in receiving their security deposit refunds after vacating properties.
Source:- CONSUMERCOMPLAINTS.IN
Maintenance and Service Issues: Users have expressed dissatisfaction with the quality and timeliness of maintenance services, citing delayed responses and unresolved issues. Source:- VAKILSEARCH.COM
Customer Support Challenges: NESTAWAY TECHNOLOGIES PRIVATE LIMITED have 2 customer support options like call & email but despite there are reports of inadequate customer support, with some users feeling that their concerns are not addressed promptly or effectively.
Source:- MOUTHSHUT.COM
In summary, while NestAway has facilitated housing solutions for many, it faces criticism in areas like deposit refunds, maintenance services, and customer support. Prospective users are advised to consider these factors and review recent feedback before making decisions.
The Future of NestAway: Expansion or Struggle? Predictions on NestAway’s market standing in 2025.
If we LawNews looking ahead to 2025, NestAway's future depends on its integration with Aurum PropTech. The acquisition could provide the necessary resources and strategic direction to address past challenges. However, the competitive rental market and previous financial setbacks suggest that NestAway may continue to face obstacles. Its success will depend on effective management and the ability to adapt to market demands.
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