Sattva Group and Bain Capital have entered a USD 100 million partnership to develop a built-to-suit co-living platform under the management of Colive. This move marks the largest funding in the co-living sector to date. With Colive's established presence in the rental home market, the collaboration aims to cater to executives seeking serviced living spaces. This venture underscores the growing demand for co-living solutions in India's major cities, especially post-pandemic, as the market is expected to expand significantly.
In a landmark collaboration, real estate developer Sattva Group and private equity giant Bain Capital are investing USD 100 million to establish a cutting-edge co-living platform. According to sources close to the deal, the partnership represents the largest funding ever received by a co-living platform for developing built-to-suit assets. This venture, which will be managed under Colive, a well-established player in the rental housing market, is set to reshape India's co-living landscape.
The newly formed platform will be jointly owned by Sattva Group and Bain Capital, with the latter holding a majority stake. Sattva Group, a Bengaluru-based real estate developer, secured a 50% stake in Colive in 2019 through a Series-A funding of INR 63 crore. Colive, which already manages 15,000 beds, is poised for significant growth, with plans to expand to 50,000 beds within the next three years.
Though the final paperwork is still being processed, insiders suggest the deal will be finalised by the end of the month. Each property within the platform will average 300,000 square feet, spread over 2-3 acres, and will be designed to meet the growing demand for serviced living spaces, particularly among executives. One individual familiar with the deal noted that there is considerable potential for serviced living within this framework, indicating the optimism surrounding this strategic expansion.
The collaboration will also enable Colive to explore new developments such as hybrid integrated pods that combine co-living and co-working spaces. This hybrid approach aligns with emerging trends, particularly among millennials and Gen Z, who are increasingly seeking flexible and community-oriented living arrangements. The co-living market in India has seen a surge in demand, especially following the COVID-19 pandemic, reversing a temporary dip in rental trends. According to Colliers, the co-living market is projected to reach 450,000 beds by the end of 2024, up from 210,000 beds in 2021.
Sattva Group will be responsible for acquiring land and developing properties, which will then be managed by Colive. This strategy allows Sattva Group to tap into the growing rental accommodation market, while Bain Capital's investment will enable further expansion. Colive is also in the process of raising an additional USD 20 million to support the growth of its rental homes business. While Suresh Rangarajan, the founder of Colive and Sattva Group, has yet to comment on the partnership, industry experts believe this collaboration will significantly impact the co-living space, positioning Colive as a market leader across major cities like Mumbai, Pune, Bengaluru, Hyderabad, and Chennai.
As the shared accommodation business continues to grow, this partnership between Sattva Group and Bain Capital could signal a new era of professionally managed, serviced living spaces tailored to the evolving needs of urban India.
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