Co-living enterprise Zolostays has undergone remarkable growth, achieving a fivefold increase in revenue over the past two fiscal years, rising from Rs 43 crore in FY22 to over Rs 200 crore in FY24. Despite this significant revenue boost, the firm backed by Nexus Ventures successfully managed its losses during this timeframe.
Zolostays’ operational revenue surged to Rs 204.4 crore in FY24, up from Rs 95.5 crore in FY23, as detailed in its consolidated financial statement obtained from the Registrar of Companies (RoC).
Zolostays caters to students, professionals, and organizations by offering co-living spaces. Revenue generated from residential accommodations and associated services, such as service fees and accommodation charges, constituted 93% of total operating revenue. This segment witnessed a substantial growth of 3.4 times, increasing to Rs 191 crore in FY24 from Rs 55 crore in FY23.
In addition, Zolostays provides services to educational institutions for the management of residential facilities, alongside food subscriptions and other amenities. Revenue from this segment, however, saw a decline of 72%, falling to Rs 10.4 crore in FY24. The firm also recorded Rs 4.6 crore in interest income, bringing the overall income to Rs 209 crore in FY24.
On the expense side, property management and operational costs were the largest contributors, making up 52% of total expenditures. These costs, which encompass food, rent, electricity, housekeeping, and consumables, increased by 2.3 times to Rs 139 crore in FY24 compared to Rs 60.5 crore in FY23.
For detailed information regarding operating costs, please refer to various sources.
The employee benefit expenses rose by 16%, reaching Rs 83 crore in FY24. Legal, advertising, communication, commission, and other overhead costs contributed to an overall expense increase of 58%, from Rs 168 crore in FY23 to Rs 266 crore in FY24.
Zolostays’ significant growth alongside controlled spending resulted in a 17.4% reduction in losses, decreasing from Rs 69 crore in FY23 to Rs 57 crore in FY24. The return on capital employed (ROCE) and EBITDA margin were reported at -89.96% and -16.75%, respectively, with an expense-to-revenue ratio of Rs 1.30. In FY24, the Bengaluru-based company reported current assets of Rs 76 crore, which included Rs 34 crore in cash and bank balances.
Zolo has successfully secured a total of $118 million in funding to date. According to a startup data intelligence platform, Nexus Ventures holds the largest share with 34%, followed by Investcorp and Mirae Asset.
