Innov8, a flexible workspace provider owned by OYO, has successfully raised ₹110 crore in a primary funding round, valuing the company at ₹1,000 crore. The company diluted 10% of its equity to facilitate this capital infusion, which was oversubscribed by 2.7 times, indicating strong investor interest.
Key Investors and Funding Allocation
The funding round was led by prominent family offices, including those of Mankind Pharma, Gauri Khan, Rupa Group, and Jagruti Dalmia, collectively contributing 55% of the total funds raised. The fundraising process was facilitated by InCred.
Innov8 plans to utilize the capital to double its co-working centers in India to 100 by the end of 2025. The funds will also support strategic initiatives such as acquisitions, technology upgrades, partnerships, and expansion into niche segments.
Expansion and Growth Plans
Recently, Innov8 launched two state-of-the-art centers in Mumbai, located in Navi Mumbai and Andheri. Each center spans over 1 lakh square feet and offers a seating capacity of 3,000, making them the company’s largest facilities to date. This expansion is part of Innov8’s ongoing strategy to strengthen its presence in Tier-1 cities, including Delhi, Gurgaon, Noida, Mumbai, Navi Mumbai, Pune, Chennai, Bangalore, Ahmedabad, and Hyderabad. Additionally, the company plans to add 4 million square feet of managed office space in India over the next three years.
Financial Performance and Clientele
Innov8 reported a profit after tax of ₹62 crore in the financial year 2023-24, a significant increase from ₹2.5 crore the previous year. The company boasts an occupancy rate exceeding 90% across its centers, driven by rising demand for flexible office spaces. Its clientele includes prominent brands such as Swiggy, IndusInd Bank, JioSaavn, PhonePe, and Tata Digital.
Leadership Perspectives
Rakesh Kumar, Group Chief Financial Officer of OYO, stated, “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.”
Pankhuri Sakhuja, Business Head at Innov8, added, “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.”
Our Opinion on the News
Innov8’s successful funding round and ambitious expansion plans reflect the growing demand for flexible workspaces in India’s urban centers. The substantial oversubscription of the funding round indicates strong investor confidence in Innov8’s business model and growth trajectory. By focusing on Tier-1 cities and planning significant increases in managed office space, Innov8 is well-positioned to capitalize on the evolving work culture that increasingly favors flexibility and scalability.