Oxfordcaps ventures into Indonesian and Malaysian market to raise $50 mn

Student housing provider Oxford caps Monday said it is foraying into Indonesia and Malaysia as part of its plans to offer over two lakh beds through its platform across Asia Pacific region by 2021. The company, which operates in India and Singapore and has 15,000 beds on its platform, is aiming to raise USD 50 million (about Rs 350 crore) in funding.

"Indonesia and Malaysia - with over five million and 1.5 million students, respectively - provide an extremely attractive market... This expansion will take us to 20,000 beds across over 15 cities," Oxford caps co-founder and CEO Annu Talreja told PTI. By 2021, the company aims to redesign the student living experience across the Asia Pacific with over two lakh beds, she added.

Oxford caps provide a custom-designed and standardised student housing product with a full-stack of services and amenities. Priyanka Gera, COO and co-founder of Oxford caps, said student housing in India alone is over USD 20 billion (about Rs 1,40,000 crore) market opportunity.

"There are 36 million students in India every year and almost half of them have moved from their hometown, thereby requiring housing. Investors, both global and domestic, recognise the market size and are betting on the space," she explained. Gera said a number of large funds are looking at investments in companies like Oxford caps to help develop and manage institutional-grade assets in India.

"We are looking at the fundraiser as a mix of USD 50 million in our operating company to scale-up our management business to more than 2 lakh beds, as well as a separate USD 250 million asset ownership platform that is managed by us," Gera said. She added that the company has received interest from some of the largest players in real estate and private equity space and a decision on the same is likely to be made in a quarter's time.

In March, the company had raised USD 8 million (about Rs 56 crore) in series A round from Times Internet, Kalaari Capital and 500 Startups. It also raised about USD 2 million in venture debt. Oxford caps operates via three sub-brands and caters to students across price segments, including Oxford caps Premium Residences, Oxford caps Student Residences and Oxford caps Dorms (budget segment).

Its services include Wi-Fi, laundry, meals, professional housekeeping and an array of events and activities focused on career development and lifestyle for its students.