NEW DELHI: Serviced apartment company 14Square has received Rs 2 crore funding from Sambhav Learning Private Limited, a company backed by Kolkata-based industrialist Ravi Didvania with interests in the automotive and mining sector.
The asset-light mid-market chain is co-founded by Mumbai-based Prashant Maharaj and Gaurang Chandarana aims at being a real estate + hospitality player across major cities. “Current estimates say the total value of the mid-market stays in India stands at about Rs 1.5 crore and this is set to double in the next decade. Sambhav has invested Rs 2 crores in the form of seed money and we are looking to go to raise working capital next,” said Maharaj.
Didvania confirmed the deal with ET, “In addition to the Rs 2 crore investment, we will also develop assets worth Rs 50 crore which 14 Square will manage for us. We have some existing properties under Sambhav Learning which will be managed by them. Going forward, this will help us build our real estate arm as well,” he added.
Across India, mid-market hotels and serviced apartment chains fight for the same set of customers. Last year Assotech Realty tied up with mid-market company Lemon Tree Hotels to manage and operate its serviced residences; the first project for which- 210 apartments, under the branding of Sandal Suites will be launched in Noida in 2015.
Luxury player Four Seasons has an 80-year contract with Three C Universal Developer for a mixed-use project that will have a 250-room five-star luxury hotel and 180 Four Seasons branded residences. It is scheduled to open in 2016. In Mumbai, a 147-apartment Grand Hyatt Residences has been operational for a few years now.
14Square currently manages about 10 serviced apartments across the country and plans to expand to major metros going forward
Read More: http://economictimes.indiatimes.com/industry/services/hotels-/-restaurants/serviced-apartment-company-14square-receives-funding-of-rs-2-crore/articleshow/48682087.cms