Flex space startup Innov8 has raised ₹110 crore by diluting 10% of its stake, securing investments 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. The funding round, facilitated by InCred, was priced at a valuation of ₹1,000 crore, reflecting the strong growth potential of the company in India’s evolving coworking landscape.
With this capital infusion, Innov8 has ambitious expansion plans, aiming to double its coworking centres in India to 100 by 2025. The funds will be strategically utilized to explore new growth opportunities, including acquisitions, technological advancements, partnerships, and expansion into niche segments. The company is actively working on enhancing its offerings to cater to the increasing demand for flexible workspaces, driven by businesses of all sizes embracing hybrid work models.
“The funds raised will accelerate our expansion plans, building on the strong growth and operating leverage we are already achieving,” stated Rakesh Kumar, Group Chief Financial Officer at OYO, the parent company of Innov8. This announcement underscores the company’s focus on scaling its operations while maintaining financial sustainability.
Innov8 has already made significant strides in expanding its footprint, recently launching two new centres in Mumbai at Navi Mumbai and Andheri. These locations, spanning over 1 lakh square feet each, collectively offer a seating capacity of 3,000, making them the company’s largest coworking facilities to date. As part of its broader expansion strategy, Innov8 aims to strengthen its presence in Tier 1 cities, including Delhi, Gurgaon, Noida, Mumbai, Navi Mumbai, Pune, Chennai, Bangalore, Ahmedabad, and Hyderabad.
Looking ahead, the company is also planning to add 4 million square feet of managed office space in India over the next three years. This move aligns with its long-term vision of becoming a dominant player in the flexible workspace sector, catering to enterprises, startups, and freelancers alike.
“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,” said Pankhuri Sakhuja, Business Head at Innov8. The company remains focused on leveraging the growing demand for coworking spaces, particularly as businesses seek cost-effective and agile workspace solutions.
Since its inception in 2015, Innov8 has witnessed remarkable growth, with occupancy levels exceeding 90% across its centres. The increasing adoption of coworking solutions by enterprises and startups has fueled this demand, making flexible workspaces a preferred choice in today’s dynamic business environment.
Financially, Innov8 has demonstrated strong performance, reporting a Profit After Tax (PAT) of ₹62 crore in FY 2024, including one-time exceptional items. This marks a significant leap from the ₹2.5 crore PAT recorded in FY 2023, highlighting the company’s improved operational efficiency and profitability.
With a strong financial foundation and an aggressive expansion roadmap, Innov8 is well-positioned to redefine the coworking sector in India. The latest funding round not only validates investor confidence in the company’s vision but also sets the stage for sustained growth, innovation, and market leadership in the flexible workspace segment.