Aurum PropTech is set to acquire NestAway Technologies, a managed rental home company backed by prominent investors including Ratan Tata. The anticipated buyout, worth over $20 million, marks one of the first such deals in the rental platform sector. NestAway, a key player in the online home rental marketplace, currently houses over 39,600 tenants across ten cities. This acquisition will be Aurum PropTech's eighth in the property technology sector within the last two years, highlighting the company's aggressive growth strategy.
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Property technology giant Aurum PropTech is set to finalize the acquisition of NestAway Technologies, a major player in the managed rental home industry, backed by influential investors such as Goldman Sachs, Tiger Global, and the esteemed Ratan Tata. The deal, anticipated to be valued over $20 million, marks one of the initial buyout agreements for a rental platform.
Established in 2015, NestAway Technologies is an online home rental marketplace that has attracted funding from a range of high-profile investors. These include Flipkart, Chiratae Ventures, and a university fund, in addition to various globally recognized institutional investors and distinguished business figures, such as the previous Chairman of Tata Sons.
Throughout its operational years, NestAway has effectively raised $110 million in funding to bolster its expansion and growth objectives, demonstrating the potential and trust placed in the platform by its financiers. At present, the platform boasts more than 39,600 tenants across ten major cities, despite experiencing a downturn in valuation following the COVID-19 pandemic.
Over the weekend, The Economic Times confirmed the deal in a story they published. According to the report,
In an article published by The Economic Times, founder and CEO of Aurum PropTech Ashish Deora confirmed the deal. He said the company will acquire 100% of share capital for a consideration of Rs 90 crores. In addition to this, the company also plans to inject another Rs 30 crores to further stabilise the business. In June 2022, Aurum PropTech acquired NestAway’s co-living subsidiary HelloWorld and was able to successfully scale up its operations.
The founders of HelloWorld, Ismail Khan and Jetendra Jagadev will lead NestAway post the acquisition as COO and CEO respectively. Both are said to have been a part of the original NestAway founding team.
The acquisition of NestAway is reportedly part of Aurum's strategic plan to emulate the success seen by Brazil's property technology unicorn, QuintoAndar. This suggests that Aurum PropTech views NestAway's similar operational metrics as a strategic fit for its growth in India's burgeoning residential rental market. The NestAway acquisition will mark Aurum PropTech's eighth property technology-related purchase within the past two years, reinforcing the company's assertive and ambitious growth strategy within the industry.
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