India VC Gains Momentum As Sequoia, Kalaari Put $10M In Grabhouse
Online rental house startup Grabhouse has raised $10 million in a Series B round of funding from two of India’s most prominent VC firms, Sequoia Capital and Kalaari Capital, following $2.5 million at the start of this year.
Based in Bengalore, the listing and transactional website aims to help users find housing without the hassle of a broker. Claiming 4.5 million in monthly traffic and operating in 11 cities in India, the company’s revenue model includes online lead generation as well as pricier on-the-ground assistance.
Grabhouse plans to use the new funds (in addition to seed funding from India Quotient in January 2014) to strengthen its presence in current cities, build tech capability and launch new verticals. The startup competes with players in India’s rental housing market such as CommonFloor, NoBroker and Nestaway. As India becomes increasingly mobile and its cities see an influx of new residents, the rental housing industry is poised to experience increased growth.
The backing from Sequoia puts Grabhouse in good company. Sequoia, India’s most prolific VC firm, has invested in some 100 Indian startups including high-profile Ola, Zomato and Micromax. According to a ranking by CB Insights and KPMG, Sequoia Capital India was the most active venture capital investor in all of Asia between April and June 2015.