India: Eqaro Guarantees, India’s first financial guarantees platform, and Maxemo Capital, have teamed up to give coliving operators in India access to short-term liquidity.
Maxemo Capital provides customised SME loans and working capital financing for targeted industries and markets. The companies say the partnership marks “a pivotal moment in the real estate landscape”, empowering co-living operators with access to short-term liquidity.
The coliving sector has been on a steep growth trajectory in India but it also requires the operator to make substantial investments, especially at the initial stages of setting up a new facility.
India’s widening coliving sector has struggled for investments both in the form of equity as well as debt, although the sector’s larger operators have man aged to attract some private equity investments.
The small and the medium-sized players have struggled for investments as Indian banks have shied away from this sector.
Eqaro has now adopted a growth-accelerator approach towards the coliving sector, enabling its partners to scale their business, and providing solutions to optimise the use of scarce resources.
The partnership between Eqaro and Maxemo enables small coliving operators with access to short-term liquidity in the form of advance capital against rent receivables backed by a guarantee, a facility which was earlier exclusively available for large commercial rental transactions. Additionally, coliving operators receive access to collateral-free loans at preferred terms and at short notice, backed by the guarantees provided by Eqaro, which ultimately help the operators fund their expansion plans.
Vikash Khandelwal, CEO at Eqaro Guarantees, said: “Our collaboration with Maxemo Capital extends a revolutionary solution to the coliving sector, redefining possibilities for unprecedented substantial growth and financial stability. Eqaro leads the way in creating an ecosystem of lessors and lenders to help co-living businesses scale up faster, propelling the sector towards a new chapter of success. We are delighted to announce our partnership, as we jointly strive to empower co-living operators and help them achieve their working capital needs.”
Shorya Mittal, co-founder at Maxemo Capital, added: “India’s coliving sector is a huge segment wherein there is a prominent credit gap. Many lenders are not promoting or enjoying this segment, here Maxemo and Eqaro join hands together to create an ecosystem where coliving operators can have access to collateral free loans. This credit guarantee helps reduce risk and boasts our confidence to make this partnership revolutionary. Our mission of serving underserved segment will further strengthen with this partnership. With access to advance against rent receivables and long-term collateral free loans that are backed by guarantees, Eqaro and Maxemo Capital help coliving operators achieve scale and efficiently meet their immediate capital requirements.”
