Student accommodation platform Amber raises $21 million

Bengaluru, 12 February: Student housing platform Amberon Monday said it has raised $21 million in its first round of institutional funding, led by Mumbai-based private equity firm Gaja Capital.

While the funding round comprised $18.5 million in fresh equity and the rest was raised as venture debt from Lighthouse Canton and Stride Ventures.

Founded in 2017 by Goel and Madhur Gujar, the Pune-headquartered company majorly focuses on Indians studying abroad like the US, the UK, Ireland, Australia and Canada. The student accommodation market in these countries is worth around $60 billion as per data.

According to the company, the funds raised will be utilised for global expansion apart from enhancing its offerings for property managers and students. The company plans to grow its operations by enlisting more suppliers and property managers. It will also focus on scaling the demand from both international and domestic students along with investing in innovation on the product development front.

Amber is a student accommodation platform that provides students from over 50 countries services for discovery of rental properties with user ratings, reviews and pricing.

It works as a facilitator for transaction between a property manager and customers. However, it does not have any role in maintenance of the property. It also assists students with loan services, discounts on flight bookings and guarantor services. The company has partnered with study-abroad consultancies and loan providers.

Not only abroad, student housing and co-living have emerged as two growth spots in the real estate industry. Many Indian firms operating in the country are witnessing rapid demand for student housing as migration to major cities rise for higher education.

Many PE and VC firms are investing in this space sensing the growth opportunities. Apart from equity investment, venture debt has seen a rise in this space.