Eqaro Guarantees, India’s first financial guarantees platform, today announced its collaboration with Maxemo Capital, an NBFC-ND company that aims to provide customized MSME loans and working capital financing for targeted industries and markets. The partnership marks a pivotal moment in the real estate landscape, empowering co-living operators with access to short-term liquidity.
The co-living sector has been on a steep growth trajectory in India. It also requires the operator to make substantial investments especially at the initial stages of setting up a new facility. India’s widening co-living sector has struggled for investments both in the form of equity as well as debt. The sector did attract a bit of private equity investments but that has gone only to the larger operators.
The small and the mid-sized players have by and large been bereft of any kind of investments. The banks have also shied away from this sector. In a visionary endeavour, Eqaro has adopted a growth-accelerator approach towards the co-living sector, enabling its partners to scale their business, and providing unparalleled solutions to optimize the use of scarce resources.
The innovative partnership between Eqaro and Maxemo enables small co-living 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, co-living operators also 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.
Commenting on the collaboration and what it means for the co-living sector, Vikash Khandelwal, CEO, Eqaro Guarantees said, “Our collaboration with Maxemo Capital extends a revolutionary solution to the co-living 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 Maxemo Capital said, “India’s co-living 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 co-living 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 co-living operators achieve scale and efficiently meet their immediate capital requirements.
