OYO-owned Innov8, a leading provider of flexible coworking office spaces in India, has successfully raised Rs 110 crore in funding. The funds were secured at a valuation of Rs 1,000 crore and will be used to expand Innov8’s coworking business and drive future growth.
Innov8 Funding Details
The funding round saw participation from prominent family offices, including those of Mankind Pharma, Gauri Khan, Rupa Group, and Jagruti Dalmia. These investors collectively contributed 55% of the total funds raised. Innov8 diluted 10% of its equity to secure the funds, with the round being oversubscribed by 2.7 times.
According to Rakesh Kumar, Group CFO of OYO, the funds will enable Innov8 to accelerate its expansion plans and invest in technology upgrades, partnerships, and acquisitions.
Plans for Coworking Spaces
Innov8 is set to double its coworking centers in India, aiming to reach 100 centers by 2025. The company recently launched two of its largest centers in Navi Mumbai and Andheri, each spanning over 1 lakh square feet and offering a seating capacity of 3,000.
These new centers are part of Innov8’s ongoing efforts to strengthen its presence in Tier 1 cities, including Delhi, Gurgaon, Noida, Mumbai, Pune, Chennai, Bangalore, Ahmedabad, and Hyderabad. Over the next three years, the company plans to add 40 lakh square feet of managed office space across India.
Focus on Sustainable Growth
Pankhuri Sakhuja, Business Head of Innov8, emphasized the company’s focus on long-term, sustainable growth. She stated that the capital infusion would enhance financial stability and provide a strong foundation for future expansion.
Innov8’s coworking spaces have been performing exceptionally well, with occupancy rates exceeding 90%. This growth is driven by the rising demand for flexible office spaces in India, especially in urban areas.
Financial Success and Future Goals
Innov8 reported a Profit After Tax (PAT) of Rs 62 crore in the financial year 2023-24, a significant increase from Rs 2.5 crore in the previous year. The company, founded in 2015 by Ritesh Malik, now operates over 30 centers across ten cities in India.
The funds raised will also support Innov8’s efforts to tap into niche markets and enhance its technology infrastructure, ensuring that it remains a leader in the coworking space sector.
Future of Coworking in India
With plans to expand aggressively, Innov8 is well-positioned to meet the growing demand for coworking spaces in India. The company’s vision aligns with the increasing preference for flexible and managed office spaces among businesses and professionals.
This fresh funding of Rs 110 Crore marks a new chapter for Innov8, as it continues to innovate and lead the coworking industry in India.
