Flex space startup Innov8, has successfully concluded INR 110 crore primary funding round. The company diluted 10 percent of its stake for this capital infusion. The issue received a strong response with interest from strategic investors to buy the full stake on offer. The issue was finally oversubscribed by 2.7 times. The fund raise was facilitated by InCred and was priced at a valuation of INR 1000 crore, according to a release issued by it.
The round was led by prominent family offices, including those of Mankind Pharma, Gauri Khan, Rupa Group and Jagruti Dalmia. Together, these investors accounted for 55 percent of the total funds raised.
Innov8 has recently announced that it plans to double its coworking centers 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. Innov8 recently launched two state-of-the-art centers in Mumbai at Navi Mumbai and Andheri. Each center, spanning over 1 lakh square feet with a total seating capacity of 3000, marks Innov8’s largest facilities to date.
The initiative is a part of its ongoing program to expand its presence in existing Tier 1 cities including Delhi, Gurugram, Noida, Mumbai, Navi Mumbai, Pune, Chennai, Bengaluru, Ahmedabad, and Hyderabad, optimising operations in these locations rather than expanding into new regions.
Additionally, Innov8 also plans to add 4 mn square feet of managed office space in India in the coming three years.
Commenting on the development, 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. It also underscores the trust and confidence our investors have in our vision, business model, and growth trajectory”.
Pankhuri Sakhuja, business head, 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”.
The company, founded in 2015, has seen over 90 percent occupancy in its centers, driven by rising demand for flexible office spaces.
Innov8 has reported a Profit After Tax (PAT) of INR 62 crore in FY 2024 including one-time exceptional items compared to INR 2.5 crore in FY 2023. With this, Innov8 is now one of the only two net profitable companies in the flex space business.
Innov8 is a workspace provider for leading companies like Swiggy, Jiosaavn, Tata Digital, Apollo24/7, Paytm, Manipal global, Razorpay, IndusInd Bank, Whirlpool, BBC News, Pepsico, Blenheim Chalcot, Oppo, Snapdeal, Lenskart.com, Nykaa, Big Basket, OLA, Phonepe and many more.
Founded in 2015 by Ritesh Malik, Innov8 is currently spread across ten cities—Delhi, Gurgaon, Noida, Mumbai, Pune, Chennai, Bangalore, Ahmedabad, Hyderabad, and Indore—with over 30 centers hosting over 8,000 employees of brands like Swiggy, IndusInd Bank, Jio Saavn, PhonePe, and Tata Digital.