Olive, the co-living and hotel arm of Embassy Group, is hoping to raise $20 million and fetch on board a strategic financial backer with a minority value stake in the brand, the organization’s Co-Founder and Chief Executive Officer Kahraman Yigit told HT Digital.
The Group of Embassy holds a 70% stake in Olive, while the excess is divided among the Co-Founders Kahraman Yigit and Dhruv Kalro.
Olive currently manages 55 co-living and hotel properties with a total of 2,688 keys in Bengaluru, Mumbai, and Goa.
It has plans ready to go to add one more 5,001 keys, according to information shared by the company.
Expressing about the upcoming fundraise and their commitment to expand the tech infrastructure system, Yigit says, “It is not solely for capital, we are looking to bring on board a strategic partner who will enable us to enhance our offerings and abilities on hotel capacities”.
As of now 90% of the brand’s business comes as short stays, with extended stays bringing anyplace between Rs.15,000-40,000 for each unit into the organization’s revenue, Yigit said.
Olive is looking to double its revenue in the ongoing financial year (2024-25) from the Rs.51 crore clocked in the last fiscal. We’re already at 40% of the target in the first quarter of this financial year. The company is, however, running late on its initially anticipated timeframe of turning profitable by June 2024, owing to a lag in construction timelines. We’re set to turn profitable by the end of this year”, Yigit added.
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