Innov8, the flexible office space provider owned by OYO, has successfully raised Rs 110 crore in a primary funding round to expand its coworking business and fuel future growth. The round, which saw a 10 per cent dilution, was oversubscribed by 2.7 times, highlighting strong investor interest. The funding round values the company at Rs 1,000 crore.
The investors in this round include several prominent family offices, such as those associated with Mankind Pharma, Gauri Khan, Rupa Group, and Jagruti Dalmia. Collectively, these investors contributed 55 per cent of the total funds raised, reinforcing confidence in Innov8’s business model and growth potential.
This latest funding comes as Innov8 looks to double its presence in India, with plans to expand its coworking centers to 100 by 2025. The capital will primarily be used to support strategic inorganic growth initiatives, including acquisitions, technology upgrades, partnerships, and expansion into niche market segments.
Rakesh Kumar, Group Chief Financial Officer of OYO, commented on the funding: “The funds raised will empower Innov8 to accelerate our expansion plans, building on the strong growth and operating leverage we are already achieving. It also underscores the trust and confidence our investors have in our vision, business model, and growth trajectory.”
In recent developments, Innov8 has launched two new coworking centres in Mumbai, located in Navi Mumbai and Andheri. Each of these facilities spans over one lakh square feet and offers seating capacity for up to 3,000 people. These centers represent the largest facilities to date in Innov8’s portfolio, marking a significant step in its ongoing expansion into major cities across India. The company is currently operating in Tier 1 cities such as Delhi, Gurgaon, Noida, Mumbai, Navi Mumbai, Pune, Chennai, Bangalore, Ahmedabad, and Hyderabad.
Looking ahead, Innov8 plans to add a massive 40 lakh square feet of managed office space across India in the next three years. This expansion is part of the company’s broader strategy to capitalise on the growing demand for flexible office spaces, as businesses increasingly move towards hybrid work models.
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Pankhuri Sakhuja, the Business Head of Innov8, emphasised the company’s focus on long-term, sustainable growth. She stated, “Over the past few years, we have prioritized long-term, sustainable growth. This capital infusion will not only strengthen our financial stability but also lay a robust foundation for future expansion.”
Innov8, founded in 2015 by Ritesh Malik, has experienced significant growth, with a reported Profit After Tax (PAT) of Rs 62 crore for the fiscal year 2023-24, a remarkable increase from just Rs 2.5 crore the previous year. The company has achieved an occupancy rate of over 90 per cent across its centres, reflecting the rising demand for flexible office spaces.
Currently, Innov8 operates in over 30 centres spread across ten cities, providing businesses with a range of flexible workspace solutions. The company’s success reflects the growing trend of coworking spaces, with more businesses opting for cost-effective, scalable office spaces that offer flexibility and the ability to adapt to changing work environments.
Innov8’s ongoing expansion and investment in technology and infrastructure highlight its commitment to becoming a leading player in India’s coworking industry. The company’s strategic vision, backed by strong investor support, positions it well for continued growth and success in the years to come.
