Innov8, OYO’s flex space startup, raised ₹110 crore from investors like Mankind Pharma and Gauri Khan at a ₹1,000 crore valuation. The funds will fuel expansion, targeting 100 centres by 2025. With 90% occupancy and substantial profits, Innov8 is set to capitalise on India’s booming ₹9 billion flex workspace market.
Innov8, the flex space startup owned by OYO, has secured ₹110 crore in a funding round led by family offices, including Mankind Pharma, Gauri Khan, Rupa Group, and Jagruti Dalmia. The fresh capital infusion was raised at a ₹1,000 crore valuation, with the company diluting 10% of its stake to fuel its ambitious expansion plans.
Rakesh Kumar, Group CFO, OYO, highlighted the significance of this investment, stating, “The funds raised will empower Innov8 to accelerate our expansion plans, building on the strong growth and operating leverage we are already achieving.” Innov8, known for its premium coworking spaces, aims to double its network to 100 centres across India by 2025.
The funding will be strategically utilised for inorganic growth opportunities, including acquisitions, technology upgrades, partnerships, and niche segment expansions. As part of its growth trajectory, the company has launched two new centres in Mumbai, Navi Mumbai and Andheri, to cater to the rising demand for flexible office spaces.
Pankhuri Sakhuja, Business Head, Innov8, emphasised the startup’s focus on sustainable expansion, stating, “Over the past few years, we have prioritised long-term, sustainable growth. This capital infusion will strengthen our financial stability and lay a robust foundation for future expansion.”
Founded in 2015, Innov8 has maintained over 90% occupancy across coworking spaces, serving companies like Swiggy, Tata Digital, Apollo 24/7, Paytm, Razorpay, Snapdeal, Lenskart, Nykaa, and Ola. The company’s strong performance is reflected in its FY24 Profit After Tax (PAT) of ₹62 crore, a significant jump from ₹2.5 crore in the previous fiscal, aided by one-time exceptional items.
India’s flex workspace market is rapidly growing, driven by the evolving nature of work and increasing corporate demand for flexible office solutions. According to an Avendus report, the commercial real estate market is projected to reach 126 million sq. ft. by 2028, growing at a CAGR of 15% and addressing a $9 billion market. With Innov8 aggressively expanding, it is well-positioned to capitalise on the booming demand for premium coworking spaces.
Leave a Comment
You must be logged in to post a comment.