Oxfordcaps has partnered with Cerestra Advisors to jointly own and run facilities for educational institutions. Together they are going to invest $125 million and acquire beds in different cities of India.
Oxfordcaps is the first technology-enabled student housing company in Asia. With the support of Kalaari Capital and Times Internet along with others, the startup has raised $15 million till now.
Cerestra Advisors was founded in 2015 by Vishal Goel and Jasmeet Chhabra. The private equity firm focuses on investing in core educational infrastructure.
This joint venture will buy, run, and develop housing infrastructure for students by establishing partnerships with different educational institutions.
The co-founder and COO of Oxfordcaps, Priyanka Gera, said that this alliance will operate under the name ‘CUIB’. They are targeting to acquire 25,000 beds in 6-8 months. The joint venture will target near-campus and on-campus student housing facilities. The educational institutes will underwrite the off-campus centres.
The $125 million funds will be used by Cerestra in acquiring the beds and Oxfordcaps will be responsible for managing the properties acquired. Oxfordcaps is expecting this venture to bring additional Rs. 200 crore annually to the firm, she added. Currently, Oxfordcaps has 10,000 beds in 10 cities across India, and they had earned Rs. 110 crore in the last financial year.
Managing Partner of Cerestra, Jasmeet Chhabra, revealed that Cerestra has already kept $125 million to invest in student housing infrastructure. Their company was looking forward to team with a company that understands the concept of operating a student housing space in depth, he added.
Ever since its establishment, Oxfordcaps has been making the life of students comfortable by giving them well-maintained housing facilities that are technology equipped. This joint venture will enable them to extend their wonderful work to more students across more cities.