India-based co-living startup ZoloStays has reported strong growth in FY25, with its operating revenue rising 67% year-on-year to Rs 342.3 crore. The company, which provides managed rental housing for students and working professionals, continues to expand across major Indian cities. Its total income for the year stood at Rs 346 crore, showing steady demand for organised co-living spaces.
Losses reduce as efficiency improves
Even though total expenses increased to Rs 381.1 crore, ZoloStays managed to reduce its losses. The company’s operating loss dropped by 38% to Rs 35.2 crore in FY25. This shows that the business is becoming more efficient, even while growing fast.
One of the key improvements is in unit economics. Zolo now spends about Rs 1.11 to earn every rupee, which is better than before. The main source of income continues to be its accommodation business, which contributed around 80% of total revenue.
Premium focus and IPO plans
ZoloStays is now focusing more on premium housing instead of budget PGs. The company is upgrading its properties with better design, services, and facilities to attract higher-paying customers. This shift is part of its plan to improve margins and brand value.
In 2025, the company also sold its student housing business to Good Host Spaces. This move helped ZoloStays improve its financial position and focus on its core co-living segment.
Looking ahead, ZoloStays is preparing for an IPO in 2026. It plans to grow more in cities like Bengaluru, Chennai, and Hyderabad, while also exploring international markets like Dubai and Southeast Asia using an asset-light model.
Founded in 2015 by Nikhil Sikri and team, ZoloStays currently operates over 500 properties across 10+ cities, serving more than 100,000 customers. With rising competition from players like Stanza Living, the company’s focus on better margins and premium offerings will be key to its future growth.