Technology firm Aurum acquires NestAway, an Indian startup that has previously demonstrated positive development dynamics and is a real estate rental platform.
The value of this transaction was $ 10.9 million. This amount is evidence of a significant drop in startup financial performance. NestAway was created eight years ago. During this time, the company was able to attract investment funds for $ 115 million. In 2019, the startup’s value was fixed at $ 227 million following the results of the next round of financing. The company’s investors were Sequoia Capital India, Tiger Global, Goldman Sachs, Yuri Milner, and Chiratae Ventures.
Aurum, which previously acquired one of NestAway’s divisions for about $ 6.8 million, announced its intention to direct investment funds to stabilize the startup’s business. The company intends to spend 3.6 million dollars for this purpose. Aurum’s statement on the stock exchange says that the planned investments are evidence of confidence in the startup’s potential in terms of the prospects of its activities in the Indian rental housing market worth $ 20 billion.
NestAway’s revenue at the end of last year was fixed at $ 3 million. In 2020, this financial indicator of the startup’s activity was equal to $ 9.5 million.
The decline in the cost of NestAway can be partly explained by the impact of the coronavirus pandemic on the state of affairs in the economic sphere. Currently, 18 thousand real estate objects are represented on this platform. Before the pandemic, the number of these objects was 50 thousand.
Jitendra Jagadev, the founder of NestAway, stated that at the time of the company’s founding, the main mission was to make significant changes in the lifestyle of people who live in cities. According to him, initially the startup was aimed at problem-free housing solutions that are affordable from a financial point of view and provides customers with the maximum level of living comfort. He also stated that for several years the company has been developing and expanding, serving thousands of customers and having managed to become a reliable brand in the PropTech industry.
Aurum, the new owner of Bestway, specializes in providing services in the field of information technology. The company offers software solutions, IT consulting, application development, system integration, application management outsourcing, testing, data storage, and business intelligence services.
As we have reported earlier, Uber Sells $400 Million Stake in Careem Super App Business.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
