Baskin Lake, which has become a significant shareholder in the company through the acquisition, and existing shareholder Goldman Sachs will also support the future growth of Good Host by investing additional capital.
Goldman Sachs continues to be the majority shareholder in Good Host Spaces.
HDFC on Thursday evening said it has sold its 24.48% stake in Good Host and the latter has ceased to be a part of it.
Goldman Sachs’ investment banking division advised Good Host on the transaction.
Mint had first reported in January that a Warburg Pincus affiliate was set to buy HDFC’s stake in Good Host Spaces.
The startup was founded by Nimesh Grover and Stanley D’britto in September 2017. Since then, Good Host has grown to operate around 18,000 beds at academic institutions such as Manipal University, O.P. Jindal Global University and Shoolini University. The company said it is also in talks with other prestigious institutes to expand its portfolio to 50,000 beds in the near term.
“…Good Host is confident that with Goldman Sachs and Warburg Pincus as our shareholders, our company will further strengthen its leadership position in this space and bring many more partner universities and students into our platform by providing contemporary student housing to live, learn and grow in a safe and secure environment,” said Good Host CEO Nimesh Grover.
The company is also actively hiring across verticals as it enters the next growth phase, Grover said.
“Good Host has had a remarkable journey since inception, from introducing the business model of operating student accommodation in partnership with universities in India, to scaling this platform to become the country’s largest student accommodation provider. This partnership delivers critical growth capital to universities helping them augment their educational capabilities while modernizing and introducing global best practices to the student housing assets. We look forward to partnering with Goldman Sachs, Nimesh and rest of the team in their next phase of growth,” said Anish Saraf, MD, Warburg Pincus India.
Som Krishna, MD, Goldman Sachs Asset Management said, “Our founding investment was built upon the clear, immense gap between the demand and supply for good, quality on-campus student accommodation, which we have experience in funding and developing globally. Warburg Pincus’ addition to this partnership further validates the long-term thematic basis of our vision and Good Hosts’ value proposition in catering to the fundamental housing needs of today’s modern students.”
This article was first published on livemint.com.
