India: Luxury villa rental company StayVista has revealed that it is planning to go public via an initial public offering [IPO] by 2028 and raise Rs 600 crore [approximately $72 million] in the process.
The company, formerly known as Vista Rooms, currently manages around 1,000 properties in India but StayVista wants to more than double its portfolio to 2,500 villas within the next two and a half years.
While StayVista currently operates in key gateway destinations such as Delhi, Mumbai, Bengaluru [Bangalore] and Goa, it is aiming to increase its supply into locations such as Uttarakhand, Himachal Pradesh, Kashmir, as well as wildlife hotspots including Tirupati, Ayodhya, Rishikesh, Ranthambore, Bandhavgarh and Kanha National Park, which have significant growth potential and can cater to weddings or corporate events that require larger properties.
Speaking to Business Standard, StayVista co-founder Amit Damani said that the company had been “extremely capital-efficient” over the last seven years with a capital of Rs 30 crore [$3.6 million], while it expects to close the year with a revenue of Rs 196 crore [$23.5 million] and a profit of Rs 4 crore [$479,000].
It follows a Rs 40 crore [$5 million] Series B funding round in September 2022 for StayVista, while an Indian competitor in the shape of ELIVAAS has also just secured $5 million in Series A funding.
Should StayVista go public in the coming years, it will hope for a smoother listing process that Indian hospitality chain OYO has experienced. Having withdrawn its second IPO application in May and raised Rs 1,457 crore [$173.5 million] in a Series G funding round last month, it is rumoured to be aiming to refile again in the next few months.
According to Statista, the vacation rental market in India is estimated to reach a projected value of $2.12 billion this year. In addition, the market is predicted to maintain an annual growth rate of 8.72 per cent, taking its value to $3.22 billion by 2029.
