ZoloStays: Co-Living Platform Growth in FY25

Following a fivefold expansion in FY24, the co-living and managed accommodation platform ZoloStays is on an upward trajectory. The company has reported a 67% year-on-year rise in its operating scale, while also managing to reduce its losses by 38%, amounting to Rs 35 crore.

Bengaluru-based ZoloStays noted that its operational revenue climbed to Rs 342.3 crore in FY25 from Rs 204.4 crore in FY24, as per the financial records obtained from the Registrar of Companies (RoC). The primary source of income for ZoloStays comes from accommodation and related services tailored for students, professionals, and organisations. This segment contributed to 80% of its operational revenue, which surged by 73.6% to Rs 273 crore in FY25, up from Rs 99.8 crore in FY24.

ZoloStays further provides colleges and universities with services for managing residential facilities, alongside food subscriptions and other related amenities. However, revenue from this particular segment saw a decline of 30.7%, dropping to Rs 62.9 crore.

In addition, the company generated Rs 3.6 crore in interest income, culminating in a total income of Rs 346 crore for the fiscal year ending March 2025. For ZoloStays, property management constituted the largest expense, making up 67% of total costs, which rose by 83.6% to Rs 254.9 crore. Employee benefit expenses remained consistent at Rs 82.4 crore, while depreciation saw a decrease of 28.2%, bringing it down to Rs 12.5 crore.

Advertising and promotional costs, along with donation subscriptions, commissions, and other administrative expenses led to overall expenses increasing by 43.3%, amounting to Rs 381.1 crore in FY25 compared to Rs 266 crore in FY24. Despite the robust revenue growth, ZoloStays continued to report losses at the operating level. The loss before exceptional items was reduced to Rs 35.2 crore in FY25 from Rs 56.8 crore in FY24, highlighting an improvement in the core business.

Nevertheless, after factoring in an exceptional gain of Rs 100.47 crore from selling its student housing business, which manages accommodation for educational institutions, to Good Host Spaces, the company reported a profit of Rs 59.53 crore in the previous fiscal year. ZoloStays’ EBITDA loss was recorded at Rs 14 crore, while its ROCE and EBITDA margins improved to -23.23% and -4.12% in FY25. On a per-unit basis, the firm incurred Rs 1.11 to generate every rupee in FY25.

The company reported current assets totalling Rs 137 crore, with cash and bank balances amounting to Rs 10.19 crore at the close of FY25. ZoloStays has raised a cumulative total of $118 million in funding thus far. As per media reports, Nexus Ventures remains the largest external stakeholder, holding a 34% share, with Investcorp and Mirae Asset following closely behind.