NestAway - Story, Founder, Business Model, Funding, Team, News

NestAway Startup Success Story

Startup Name NestAway
Headquarter Bengaluru
Founders Amarendra Sahu, Smruti Parida, Deepak Dhar & Jitendra Jagadev
Sector Property Search Portal
Founded 2015
Parent Organisation NestAway Technologies Pvt. Ltd.

About NestAway
NestAway - Founders
How was NestAway Started
What is NestAway
NestAway Business Model and How NestAway Works
NestAway - Revenue Model
NestAway - Funding & Investors
NestAway - Revenue/Annual Turnover
NestAway - Growth
NestAway - Partners
NestAway - Acquisition and Mergers
NestAway - Challenges
NestAway - Competitors
NestAway - Future Plans

About NestAway

NestAway is a concept. It's a solution. It's fixing something that’s grossly wrong. Well, It's all the three. It's a new concept for home owners. It's a solution for tenants & its fixing the youth housing crisis in cities.

NestAway is registered as NestAway Technologies Pvt. Ltd. Founded in 2015, NestAway Technologies Pvt. Ltd. is headquartered at Karnataka. NestAway is an online aggregator of fully furnished and well maintained rooms and flats for rent. NestAway houses are present across 13 cities in India, including Bangalore, Delhi, Faridabad, Ghaziabad, Noida, Greater Noida, Gurgaon, Hyderabad, Mumbai, Navi Mumbai, Pune and Thane.

NestAway App helps you find, book & move-in to a rental home of your choice across Indian cities. One can move-in, ask for services from tap leakage to door lock broken, pay rent & finally move-out - all with the NestAway App. NestAway App is available for android and iOS.

Here is list of other startups providing co-living spaces.

NestAway - Founders

NestAway was co-founded by Amarendra Sahu, Smruti Parida, Deepak Dhar and Jitendra Jagadev in 2015. Initially it was an aggregator of shared, furnished apartments for bachelors, before adding full homes for families.

NestAway Founders 

Amrendra Sahu is the CEO of NestAway. he is a computer science engineer from NIT Suratkal and also an MBA from IIM-B.

Smruti Parida is the co-founder and CTO of NestAway. Smruti is an IT graduate from NIT Karnataka. He has worked with companies like Microsoft and United online prior to founding NestAway.

Deepak Dhar is also an IT graduate from NIT Karnataka. Prior to NestAway he worked with companies like Aceva Technologies, Fidelity investments, Citrus Payment Solutions and Royal Bank of Scotland. Deepak Dhar who worked as CXO in NestAway, exited NestAway in June 2019 to startup a fintech venture.

Jitendra Jagadev is the COO of NestAway. He graduated from NIT Karnataka, worked with companies like Philips, Cisco, Ojas Venture Partners before joining the NestAway founding team.

The NestAway owners Amrendra, Smruti, Deepak and Jitendra are all serial entrepreneurs. While, Amrendra and Jitendra co - founded  Brizztv, Deepak was a part of the founding team of Citrus Payment Solutions. Smruti founded 'Sen6' an art marketplace.

Linekdin data shows the company has 34 team members.

How was NestAway Started

When Amarendra Sahu came to Bangalore in 2004, he had trouble finding a house to rent. Unmarried people are not the house owners’ first choice, and rent in decent localities is not always known to be reasonable.

Amarendra wanted to solve this problem and went about setting up NestAway with the help of friends. In June 2014, his friend Jithendra Jagadev’s house in Whitefield became the site of an experiment. Amarendra recollects:

We took furnishing from Furlenco, took some pictures of the house, and posted it on Facebook. There were four beds in the 2 BHK – all sold in a day. Out of the seven girls who came to visit, six wanted it and four got it.

That was the inception for NestAway that established itself in a surprisingly short time.

NestAway Logo

Read More : Read details stories and latest news on successful Indian Startup

What is NestAway?

NestAway is India's fastest growing "Home Rental Network" attempting to provide better rental solutions via design and technology. NestAway homes are ready-to-walk in homes and provides rentals based on the requirement of the tenant— a bed, a room or a complete house. From 1 BHK flats to 8 BHK luxury villas with state-of-the-art facilities, NestAway has it all for all kinds of customer needs. NestAway homes come with cot, mattress, sofa, TV, fridge, washing machine and also furnished kitchen.  Besides fully furnished,  semi-furnished and unfurnished apartments are also listed on NestAway.

Some major USPs of NestAway are-

  • Guided house visits - It gives the tenants a guided tour of the house they are interested in.
  • Rent on time - Ensures timely rent every month.
  • Zero paperwork - NestAway does all the paperwork like agreement creation.
  • House Safety - NestAway ensures that the house stays in good condition.
  • House Maintenance - NestAway provides on demand and periodic house repairs. By subscribing to NestAway Assure house owners can avail the facility of 100% free maintenance, cleaning and repairing services.  
  • Marketing and promotion - It promotes the properties registered with it through ads and other rental platforms.
  • Easy Move-in and Move-out Policy- NestAway allows easy move-in and move-out facility to the tenants. Tenants can simply visit the website or NestAway app and schedule the move-in or move-out date according to ones own convenience. NestAway move-out policy allows tenants to move out before the license end date. Again NestAway tenants can move-in  to the new house by notifying just two days before the move-in date.
  • Zero Deposit: NestAway has tied up with agencies to provide zero deposit offer, whereby the tenants can move-in simply by paying the booking amount, without paying any advance deposit.
  • Pet-friendly: NestAway allows pet lovers to find pet friendly homes
  • Open Guest Hosting Policy: Allows tenants to host guests responsibly without causing inconvenience to fellow tenants.

NestAway has a lock-in period of 6 months. Unless mentioned otherwise in the agreement, NestAway's minimum stay is 6 months. However, the minimum stay may vary in different cities. In general NestAway do not impose any move-out charges. However, if a person moves out before completion of the lock-in period, he has to pay one month rent as move-out charges.

NestAway determines the rent depending primarily upon the following factors-

  • Area and location of the house
  • Tenancy type, i.e whether a full house, a room or a bed is taken for rent.
  • Condition of the house
  • Size of the house

The best part for the house-owners is that NestAway ensures that the rent is paid before 5th of every month.

NestAway Business Model and How NestAway Works

NestAway has a sound business model. It is a one-stop service provider for tenants and house owners where neither has to pay any brokerage fee.

The company serves as a broker and property manager for home owners by helping find tenants, collect rent and manage the property over its lifetime in exchange for a percentage share of the rental stream.

Amarendra explains the business model as-

You can rent just a room, or the whole house. Our area manager will arrange the visit according to your preference. Once you are satisfied with the house, you can book it online. If you stay in the house for three days and don’t like it for any reason, we refund with full deposit. NestAway's popularity grew mainly through word-of-mouth, with digital marketing spend in the early days being less than 10 percent of total expenses.

NestAway - Revenue Model

NestAway runs on a very simple revenue model. It manages a homeowner’s rental property throughout the rental life cycle, from showing the house to a prospective tenant and closing the rental agreement to collecting rent on the owner’s behalf and assisting the tenant and owner during move-out. For all these services NestAway charges the owners a fixed percentage of 12.5% of the total rent it generates from the house as commission. NestAway do not charge any brokerage or charges from the tenants apart from rent.

NestAway - Funding & Investors

NestAway has raised over $ 104.2 million funding in 7 rounds. In the latest round NestAway raised funding of $10 million from Tiger Global Management & Chiratae Ventures in May 2019.

Date Stage Funding Amount NestAway Investors
March 2015 Seed $1.2 M Undisclosed
July 2015 Series B $12 M Flipkart, Tiger Global Management
February 2016 Venture Undisclosed Ratan Tata
April 2016 Series C $30 M Tiger Global Management
March 2018 Series D $51 M Goldman Sachs, UC RNT Fund
August 2018 Series D Undisclosed Epiq Capital
May 2019 Series D $10 million Tiger Global Management & Chiratae Ventures

NestAway - Revenue/ Annual Turnover

NestAway registered lower growth in revenue in 2017-2018 as compared to 2016-2017. While in 2016-2017 NestAway's revenue increased by 533%, in 2017-2018, the revenue increased by only 28.7%. As per ROC filling NestAway's revenue from operation in FY2018 is Rs 46.98 crores. Again, NestAway's losses incresed from  Rs 134.24 crore in 2016-2017 to Rs 203.79 crore in 2017-2018.

NestAway - Growth

Currently, NestAway is present accross 13 major cities in India. It is managing over 30,500 rental properties. Over 10,600 house owners and 72,400 tenants are registered with NestAway.

About 40% of the new bookings now come from the family segment with the ratio being at 65:35 for shared versus family rental houses.

In Bengaluru, where typically rental advances are of 10 months, NestAway offers homes on two-month deposits. The company claims to earn a monthly revenue of around $2 million. It gets a share of 12.5% in each rental agreement.

After the Series D funding of $ 51 million raised in March 2018, NestAway's valuation was about $200 million. NestAway raised 2 more rounds of funding after that making the company's valuation reach over $ 200 million. However, NestAway's exact net worth or valuation has not been confirmed by the company.

NestAway - Partners

NestAway uses Localitics, a real estate statistical data science platform that could not only predict where rental demand is going to grow, but also where India would most likely add the next new houses. Today, Localitics is used across all 10 cities in India where NestAway is present and churns out data to help us expand to the next set of cities.

NestAway - Acquisitions and Mergers

NestAway acquired their smaller rival Zenify (City Synapse Information Pvt. Ltd) for an undisclosed amount in May, 2017. This move will help NestAway expand its offerings for families.

NestAway - Challenges

One of the major challenges faced by NestAway was finding the right investors for their start-up because NestAway was the first business in this arena and so the investors were sceptical. But they are now one of the highest funded startups.

Beseides, in the initial stage earning the house owner's trust and convincing them to register with NestAway was also a challenge. To solve this issue, NestAway started offering a ‘rental default guarantee’ , whereby, NestAway gurantees the house owner to pay the rent in case the tenant does not pay it on time.

Some house owners do not want to give the house for two months' rent as deposit money and wanted more. In such cases, NestAway takes two months' rent from tenants and pay the difference.

NestAway - Competitors

There are many companies or websites like NestAway which are listing property for rent. Some of the main competitors of NestAway are FlatMate, SimplyGuest, NoBroker, Zolo and StayAbode.

However, what sets NestAway apart from the competitors is that it provides end to end solutions to the tenants and house owners by taking care of everything from making rent agreement, rent collection, house maintenance etc. In short NestAway takes care of a property throughout its rental life cycle.

You can also check out the full list of startups providing co-living spaces for students and professionals.

NestAway - Future Plans

NestAway is planning to introduce ‘Smart Homes’ by launching the Smart Lock service for all homes. Smart Lock is a safety locking system that will ensure security for people staying in NestAway homes and especially for women. This service will be available on NestAway app on both Android & iOS devices. The company is also planning to venture into women housing and senior housing sector by 2020.

Another area of focus for NestAway will be student housing. With 10.4 million migrant student population and only 6.1 million beds as the current official supply, there is an increase in demand for student housing that is growing day by day. Cashing in on this opportunity, NestAway, is strongly focusing on student housing and aims to start operations with Kota, Rajasthan followed by Delhi (North Campus) and Bangalore. NestAway is also looking at expanding PAN India and there are conversations across the country with progressive builders for exclusive properties year marked for students.

One of the focus for the brand is also the concept of co-living, wherein NestAway takes up the entire building including the shared facilities such as gym, libraries, common areas, game room, among others. Through this concept, NestAway is trying to create a community where the members can share common interests engage in yoga/salsa classes, have talk sessions from seasoned entrepreneurs/sports persons and promote start-ups and collaboration among others.

NestAway Website

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About Shubham Kumar

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