Feb 12: Amber, a student accommodation platform has netted $21 million to augment its products development and to raise both supply and demand. Further the startup is seeking to partner with property managers to expand its inventory while targeting student communities to boost demand.
Saurabh Goel, CEO of Amber, says “Solidifying and deepening our presence in markets we have already launched in, such as the UK, Ireland, and Australia, is one focus. The other is expanding into new geographies, including the US, Canada, and several countries in Europe like Spain and Germany. While we have already entered these markets, our goal is to go from ‘zero to one’ to ‘one to 10.”
Founded in 2017 by Goel and Madhur Gujar, Amber the Pune-headquartered startup – a marketplace for students to book long-term housing, offers its services in seven countries: the United Kingdom, the United States, Australia, Ireland, Canada, Germany, and Spain. The United Kingdom and Australia constitute around 70-80% of Amber’s business, while the remainder comes from markets such as the US, Canada, and Europe.
“We are ensuring that the entire process of house hunting is as seamless as possible. The idea is to simplify the rental booking process, making it as effortless as reserving a hotel. We are building tools for property managers, enabling them to streamline their operations,” said Goel, adding that the company is leveraging AI to enhance efficiency.
Amber expects new markets to contribute 50% in revenues in the next 3 years
Amber expects its business in the newer markets to increase to approximately 40-50% in the next 2-3 years. Students from over 50 countries use the platform in more than 250 cities around the world, including about 50 large cities, the company stated.
“Global increase in student enrolments underpinned by a long-term study abroad trend is fuelling the organised student housing market. We are deeply impressed by Amber team’s ability to solve a critical pain point for both students and property managers,” said Gopal Jain, Managing Partner at Gaja Capital. Goel said that Amber may look at inorganic growth opportunities by acquiring some smaller companies to foster growth in the future.
The funding round was led by private equity firm Gaja Capital. The funding comprises $18.5 million in equity from Gaja and the remainder in the form of venture debt from Lighthouse Canton and Stride Ventures.
