JM Financials Private Equity Fund To Invest Rs 40 Crore In Isthara Parks

JM Financial India Fund II, a private equity fund set up by JM Financial, has finalised an investment of Rs 40 crore ($5.7 million) in Coimbatore-based co-living operator Isthara Parks Pvt Ltd. The funds would be used for the company’s expansion plans.

This marks the closing of the fourth investment by the fund, the company said in a statement.

“Isthara has been growing consistently since it was founded and we strongly believe in the management’s disciplined approach. Although, at an early stage right now, we believe the co-living sector in India is rapidly evolving to appeal to a larger and broader tenant base due to its cost effectiveness, convenience and technology orientation,” Darius Pandole, Managing Director and CEO, Private Equity & Equity AIFs at JM Financial.

Proceeds from the investment will support expansion in existing markets Hyderabad, Bangalore and National Capital Region (NCR) and other key cities in Asia thereafter.

JM Financial India Fund II is a sector-agnostic growth-capital private equity fund which invests in high-growth, small to mid-market companies in financial services, consumer and manufacturing sectors among others.

“This growth capital infusion and partnership with a seasoned investor like JM Financial Private Equity will help us accelerate our current expansion plans,” Gilbert James, Managing Director at Isthara said.

Advisors on the deal included AZB & Partners, Jones Lang LaSalle and Nine Rivers Capital Advisors.

Isthara provides fully-furnished shared-living accommodation for working professionals and students, along with a host of amenities such as daily meals, WiFi Internet, gym, laundry and housekeeping service among others. In addition, the company organises community-focused events on a regular basis to promote co-living amongst residents. Currently, it manages about 3,000 beds across 29 properties in Hyderabad, Bangalore and NCR.