News on Medial

Your-Space posts Rs 142 Cr revenue in FY24; losses up 20%

Entrackr · 9m ago

Medial

Student housing startup Your-Space recorded steady growth, with revenue surpassing Rs 140 crore in the fiscal year ending March 2024. However, the Delhi-based company also saw a slight increase in losses during the same period. Your-Space’s revenue from operations increased by 21.8% to Rs 142.7 crore in FY24 from Rs 117.2 crore in FY23, according to its consolidated financial statement filed with the RoC. Your-Space is a student housing company providing affordable PGs, hostels, and co-living spaces for girls and boys. The company operates over 60 smart spaces equipped with tech-enabled safety features such as facial recognition, biometrics, and digital locks. Income from residential services accounted for 99.5% of total operating revenue, which grew by 30%, reaching Rs 142.96 crore in FY24 compared to Rs 109 crore in FY23. The remaining income was derived from the sale of food, electricity, and other allied services. For the student housing startup, rental costs for accommodations accounted for 52.6% of total expenses, rising by 34% to Rs 92.2 crore in FY24 from Rs 68.9 crore in FY23. Employee benefits were Rs 21.1 crore in FY24. Additional overheads, including facility repairs and maintenance, advertising, and transportation, contributed to total expenses of Rs 175.3 crore in FY24, reflecting a 20% increase compared to FY23. See TheKredible for the complete expense breakdown. Your-Space recorded losses of Rs 30.7 crore in FY24, up from Rs 25.5 crore in FY23. Its ROCE and EBITDA margin stood at -809.54% and -69.15%, respectively. The company spent Rs 1.23 to earn a rupee of operating revenue in the last fiscal year (FY24). FY23-FY24 FY23 FY24 EBITDA Margin -14.47% -14.57% Expense/₹ of Op Revenue ₹1.24 ₹1.23 ROCE -69.15% -809.54% The eight-year-old startup has raised Rs 129 crore to date, including a $10 million round led by personal investments from Shantanu Rastogi (General Atlantic) and Ajay Gupta’s (Capital Foods) family office, AJAX Capital, along with Holy Basil Consultancy. The startup competes with Abuzz Oxfordcaps, Stanza Living, University Living, and Housr, among others. The student housing market offers two distinct opportunities. One, tie-in with large universities to manage hostels for them as a service provider, as Good Host Space has done with its hostel model, primarily in association with the Manipal Group. And then there is the second model to provide student housing in the environs of colleges and universities independently, to fill the gaps in those markets. Both models have their advantages, with the Your-Space model relatively insulated from policy impact, but facing higher marketing and promotion costs, for instance.Irrespective, much like higher education itself, the sector faces interesting times ahead should the murmurs around rising costs into a clamour for a deeper view on education costs, where hotel costs have become a significant component. A sector where cost escalations have to be considered very carefully, however large the potential and existing size, will always lead to some investor wariness, and explains the relatively later entry of these startups to the funding party. The student housing sector is fast reaching that point where a breakthrough on the stability of the business model and visibility of growth prospects will be needed more clearly soon to keep attracting investor interest.