According to two sources aware of the development, Amber Student, a global provider of solutions for student housing, is raising a venture round. The startup from Pune will participate in its first institutional round with this.
“Amber is in late-stage talks to raise a $15-20 million round from a venture capital firm,” said one of the sources, requesting anonymity. “Currently, the company is negotiating terms of the deal which is likely to materialize in three-four weeks.”
The startup, which was founded by Saurabh Goel and Madhur Gujar, also has angel investors from Ola’s Bhavish Aggarwal, Khatabook’s Ravish Naresh, and former FreeCharge co-founder Sandeep Tandon. According to sources, some of these investors have also left the company.
Amber asserts to be in operation in seven nations, including the UK, USA, Australia, Ireland, Germany, Canada, and Spain, with over 340 student housing operators. The app aids students in finding verified properties, evaluating them, and reserving a place to live.
“Amber has grown multifold in the past two years (post-Covid) and their metrics attracted several venture capitalists,” said the above-mentioned source. “Several investors expressed definitive interest and Amber may end up raising more money (above $20 million). The company is likely to be valued at around $100 million.”
According to the business, it streamlines paperwork and payment procedures and eliminates broker negotiations. In the nations where they operate, they assert to have one million beds and have offered to lodge close to 800 universities.
Amber recently asserted that in 2022, it will have a gross bookings value (GBV) of $600 million, while its operational revenue will have increased to $15 million and will have generated a post-tax profit of $6 million. Amber projected that their respective partners’ GBV would surpass $1.2 billion in 2023.
According to data intelligence platform TheKredible, Indian-based Amber, which is registered in the US, generated operating revenue of Rs 17.9 crore ($2.35 million) and a profit of Rs 2.81 crore ($0.36 million) in India during FY22. The company has not yet submitted its FY23 audited annual report.
According to a market report, student housing is expected to continue expanding and reach a value of over $25 billion by 2025. Amber faces off against a number of Indian companies, such as University Living, Your Space, Good Host Spaces, and Homversity.