Incuspaze raises $8 million in funding led by the India Inflection Opportunity Fund, boosting its expansion plans across India. The co-working provider’s portfolio spans 3 million sq ft in 18 cities, with plans to enter southern markets. This funding signals a potential IPO and strengthens their market position.
Incuspaze, a leading co-working space provider, has raised $8 million in its first funding round led by the India Inflection Opportunity Fund (IIOF) and other financial institutions. This significant investment will enhance Incuspaze’s ability to offer premium workspace solutions to enterprises, MSMEs, and startups, further cementing its position in the market.
The company’s portfolio spans 3 million square feet across 18 cities and 44 locations. Recently, Incuspaze leased 220,000 square feet in Gurugram’s M3M Urbana project, a substantial addition to its extensive network. Under the leadership of Sanjay Choudhary, Incuspaze plans to expand further into southern India, targeting key cities like Bengaluru, Chennai, and Hyderabad. Their clientele includes prominent names such as PhonePe, Byju’s, Flipkart, and Girnarsoft.
Financially, Incuspaze has shown remarkable growth, with operating revenue tripling in FY23 to ₹50 crore from ₹14.84 crore in FY22. The company also significantly reduced its losses from ₹5 crore to ₹98 lakh. Although the annual report for FY24 is yet to be filed, these numbers indicate a strong turnaround. A June 2024 report by property consultancy Colliers highlighted the increasing demand for flexible office spaces in India’s top six cities, with Bengaluru and Delhi-NCR contributing 65% of this demand.
The India Inflection Opportunity Fund led the funding round and previously closed its pre-IPO fund at $60 million. While Incuspaze has not commented on any IPO plans, this strategic investment from IIOF suggests a potential public listing in the future. IIOF typically invests in firms preparing for an initial public offering, indicating that Incuspaze could be on the path to going public.
Incuspaze is not alone in this venture; Awfis was the first Indian co-working startup to list on the stock exchange. Smartworks recently converted into a public company, hinting at a possible IPO. This fresh funding will bolster Incuspaze’s expansion plans and enhance its service offerings. With a robust portfolio, an impressive client list, and rising demand for flexible office solutions, Incuspaze is well-positioned to capitalise on the booming co-working trend in India.
The $8 million funding round is a significant milestone for Incuspaze, affirming its growth trajectory and potential within the shared workspace sector. With further expansion plans and a possible IPO, Incuspaze is a company to watch.
