ZoloStays reported robust FY25 growth as operating revenue rose 67% year-on-year to Rs 342.3 crore, reflecting steady demand for organised co-living among students and working professionals. Total income stood at Rs 346 crore as the company expanded its managed rental portfolio across major Indian cities.
Improved efficiency cuts losses
Despite total expenses increasing to Rs 381.1 crore, ZoloStays narrowed its operating loss by 38% to Rs 35.2 crore in FY25. The improvement reflects tighter cost controls and better unit economics.
Unit economics now show the company spends about Rs 1.11 to earn each rupee, an improvement from prior years. Accommodation services remain the dominant revenue source, contributing around 80% of the company’s income.
Shift to premium inventory and strategic moves
ZoloStays is repositioning its portfolio toward premium housing and away from low-cost PGs. The company is upgrading design, services and facilities to attract higher-paying tenants and improve margins and brand perception.
In 2025, ZoloStays sold its student housing business to Good Host Spaces. Management says the divestment strengthens the balance sheet and sharpens focus on core co-living operations.
Growth and IPO plans
The company is preparing for an initial public offering in 2026. Near-term expansion will prioritise Bengaluru, Chennai and Hyderabad. ZoloStays also plans selective international forays, including Dubai and Southeast Asia, using an asset-light model to limit capital intensity.
Founded in 2015 by Nikhil Sikri and co-founders, ZoloStays now operates more than 500 properties in over ten cities and serves upwards of 100,000 customers. With rising competition from rivals such as Stanza Living, the company’s drive to boost margins through premium offerings will be central to sustaining growth.
