Stanza Living’s Operating Revenue Jumps 2.9X, But FY22 Losses Surge 1.8X to INR 417.4 Cr
- ByStartupStory | February 15, 2023
Stanza Living, a coliving startup based in Delhi, experienced a 1.8X increase in its consolidated net loss, reaching INR 417.4 Cr during the financial year 2021-22 (FY22) compared to INR 226.33 Cr in the previous fiscal year, in conjunction with its top line growth. Its parent company, Dtwelve Spaces Private Limited, reported a 2.9X surge in revenue from operations, rising to INR 115.08 Cr from INR 39.77 Cr in FY21, according to filings with the Ministry of Corporate Affairs.
Stanza Living primarily earns its revenue by offering accommodation services to residents, as well as additional supporting services. The startup levies a fixed fee from the residents, which includes any fees related to ancillary services, less any discounts or rebates, and are paid based on the contract milestones agreed upon with the customer.
With the increase in operating revenue, the startup’s total income surged to INR 154.95 Cr in FY22 from INR 53.30 Cr in FY21, a growth of 2.9X.
In terms of expenses, Stanza Living saw a substantial 2X increase to INR 572.41 Cr from INR 279.63 Cr in FY21. A significant chunk of the expenses, accounting for almost 40% of the total, was allocated towards employee benefits. This cost surged 2.9X to INR 223.77 Cr from INR 74.66 Cr in FY21, and covers employee salaries, PF contributions, gratuity, and other benefits related to employee welfare.
Stanza Living witnessed a 2.6X increase in other expenses, surging to INR 160.8 Cr in FY22 from INR 62.99 Cr in FY21. These expenses consist of the cost of power and fuel, rent, electricity expenses, as well as advertising and promotional expenses, among others. The startup’s advertising and promotional expenses alone experienced a remarkable 3X increase to INR 22.01 Cr in FY22, compared to INR 7.44 Cr in the previous fiscal year.
Sandeep Dalmia and Anindya Dutta founded Stanza Living in 2017, which provides rental accommodation to both students and working professionals in over 20 cities across India.
Stanza Living marked its foray into the managed apartment segment in the previous year, investing $10 Mn for an initial inventory of 5,000 rooms. The startup launched tailor-made apartments in six cities, including Delhi, Gurugram, Bengaluru, Hyderabad, Pune, and Chennai.
Investors such as Altreia Capital, Matrix Partners India, and Sequoia Capital India have backed the startup, which has raised a total of $227.7 Mn in funding to date.
Although the COVID-19 pandemic and consequent stay-at-home mandates significantly impacted the coliving sector in 2020 and 2021, companies in the sector have seen a recovery since mid-2022. As per a report by Colliers, the coliving segment is projected to have 4,50,000 beds, primarily driven by organised players, by the end of 2024, compared to 2,10,000 beds at the end of 2021.
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