Oxfordcaps, Student housing startup has announced its partnership with Private Equity firm Cerestra Advisors aimed at owning and operating services for educational institutions. The joint initiative is expected to invest $125 million to expand its network and acquire more beds.
The deal will operate under the name ‘CUIB’ and aims to take over 25K beds in coming six to eight months. Priyanka Gera, COO and co-founder of Oxfordcaps said, “We have entered into a joint venture with Cerestra to focus on on-campus and near-campus student housing centers. The off-campus centers will be underwritten by educational institutions.”
Founded in 2015 by Jasmeet Chhabra and Vishal Goel, Cerestra Advisors is a private equity firm focused on investing in core edu-infra sector. The enterprises have not disclosed the shareholding capacity of each firm in the deal though it is clear that Cerestra will be investing $125 million for expansions while Oxfordcaps will be responsible for handling the properties.
Through this joint venture, Oxfordcaps is expecting to get an additional revenue of Rs 200 crore annually. The firm presently owns 10K beds across 10 cities and has clocked a revenue of Rs 110 crore in 2019, as told by Gera. The student housing startup counts Kalaari Capital and Times Internet among others as its investors. They have raised about $15 million till date.
The plan of the joint venture is to partner with educational institutions around the country and acquire, operate and develop student housing infrastructure. “Joining forces with Cerestra will give both of us an edge to emerge as the most efficient entity to provide educational institutions a one-stop-shop for acquisition, operation, and development of on-campus and near-campus student accommodation,” said Annu Talreja, CEO, Co-Founder of Oxfordcaps.
“We have been on the lookout for like-minded partners who understand operating the student housing space,” said Jasmeet Chhabra, Managing Partner, Cerestra.