A significant minority stake has been bought in Good Host Spaces by Warburg Pincus, a private equity firm based in the United States of America. Good Host Spaces offers one of the best on-campus housing facilities for students and is well known across the country.
In addition to the primary investment in the country, Baskin Lake Investments affiliated with Warburg also acquired HDFC Ltd’s 24.48% stake.
The plans of Good Host Spaces for future growth and development will be backed by Baskin Lake and Goldman Sachs who will make an additional capital investment that will be of subsequent help in putting the startup in line with success and growth, in addition to giving its growth plans a speed boost. Goldman Sachs is also an existing shareholder of Good Host Spaces.
Good Host Spaces
Good Host Spaces was incepted in 2017, and it was the brainchild of Nimesh Grover and Stanley D’britto. As per the claims of the company, it is the largest third-party on-campus accommodation service provider with an admirable growth trajectory. The company has made its presence felt across five cities and as per its claims, it operates about 18,000 beds at universities. Well-known universities like Manipal University, OP Jindal Global University, and Shoolini University come under the list of its customers.
The company faces rather tough competition from startups like Stanza Living, Oxfordcaps, and Placio. The backing from Warburg will be of subsequent help to the startup to cope with the growing competition and to extend its reach and services to more universities. Good Host plans to enhance its portfolio by extending to a total of 50,000 beds.
According to Anish Sharaf (Managing Director, Warburg Pincus India)
“This partnership delivers critical growth capital to universities helping them augment their educational capabilities while modernizing and introducing global best practices to the student housing assets.”
Good Host pegs its hopes on the new National Education Policy and the plans to enhance the educational quality of Indian Universities to put them in line with their global counterparts. This will mean an increased demand for housing facilities for students that are professionally managed and of high quality.