BENGALURU: Flex space start-up Innov8, which is owned by OYO, has raised Rs 110 crore in a funding round led by family offices, including those of Mankind Pharma, Gauri Khan, Rupa Group and Jagruti Dalmia.
These investors together have accounted for 55 per cent of the total funds raised. The fund was raised at a valuation of Rs 1,000 crore.
The company diluted 10 per cent of its stake for this capital infusion.
Rakesh Kumar, Group Chief Financial Officer, OYO said “The funds raised will empower Innov8 to accelerate our expansion plans, building on the strong growth and operating leverage we are already achieving."
The start-up, which is into premium co-working spaces, recently announced its plans to double its coworking centres in India to 100 in 2025.
The capital raised will support strategic inorganic growth opportunities such as acquisitions, technology upgrades, partnerships, and expansion into niche segments. Also, it recently launched two centres in Mumbai - Navi Mumbai and Andheri.
Pankhuri Sakhuja, Business Head, Innov8 added “Over the past few years, we have prioritised long-term, sustainable growth. This capital infusion will not only strengthen our financial stability but also lay a robust foundation for future expansion."
The company, founded in 2015, has seen over 90 per cent occupancy in its centres, driven by rising demand for flexible office spaces. In FY24, it reported a Profit After Tax (PAT) of Rs 62 crore including one-time exceptional items compared to Rs 2.5 crore in the previous fiscal.
Innov8 is a workspace provider for companies including Swiggy, Tata Digital, Apollo 24/7, Paytm, Razorpay, Snapdeal, Lenskart.com, Nykaa, and Ola, among others. Founded in 2015 by Ritesh Malik, it is currently present across 10 cities with over 30 centers hosting over 8,000 employees.
According to the Avendus report, the commercial real estate market in the country is growing significantly, led by flex workspaces and it is estimated to grow up to 126 mn sq ft at a 15% CAGR, addressing a $9 billion market by 2028.