PropTech agency Aurum is buying NestAway, a as soon as high-flying Indian startup working in the identical house, for as much as $10.9 million, in a deal that marks a close to full erosion in worth for the startup’s buyers.
Eight-year-old NestAway raised $115 million through the years and was valued at $227 million in a funding spherical in 2019. The startup counts Sequoia Capital India, Tiger World, Goldman Sachs, Yuri Milner and Chiratae Ventures amongst its buyers.
Aurum, which earlier acquired a unit of NestAway for about $6.8 million, mentioned it’s going to make investments $3.6 million to stabilize NestAway’s enterprise. “This capital infusion in NestAway is a testomony to Aurum PropTech’s conviction in India’s $20-billion Rental Housing market,” Aurum mentioned in a inventory alternate submitting.
NestAway’s income shrank to $3 million in 2022, down from $9.5 million two years earlier.
The erosion in NestAway’s worth can at the least be partially attributed to Covid. The house rental platform NestAway options 18,000 properties on its platform, down from 50,000 earlier than the pandemic.
“After we began NestAway, our imaginative and prescient was to revolutionize the best way individuals dwell in cities by offering them with handy, reasonably priced and hassle-free housing options,” mentioned Jitendra Jagadev, founding father of NestAway in a press release. “Through the years, we have now grown and expanded, serving hundreds of shoppers, turning into a trusted model within the PropTech business.”