Innov8 Raises ₹110 Crore at ₹1,000 Crore Valuation to Accelerate Expansion
Innov8, the flexible space provider owned by OYO, has successfully raised ₹110 crore in its primary funding round, securing a valuation of ₹1,000 crore. The company has diluted 10% of its stake to facilitate this capital infusion, which was oversubscribed by 2.7 times, reflecting strong investor confidence in the growing demand for co-working spaces in India. The round was led by a number of prominent family offices, including those of Mankind Pharma, Gauri Khan, Rupa Group, and Jagruti Dalmia. These investors collectively accounted for 55% of the total funds raised, underscoring their belief in Innov8’s vision and growth prospects.
The capital raised will enable Innov8 to accelerate its expansion plans and enhance its market presence in India. Rakesh Kumar, Group CFO of OYO, expressed confidence in the potential of the company, 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’s swift growth trajectory includes plans to double its number of co-working centres in India to 100 by 2025. The company’s ability to attract a significant investment from such high-profile family offices highlights the confidence these investors have in Innov8’s continued success. Innov8 has been rapidly expanding its footprint across India and continues to make strategic moves to meet the evolving needs of businesses looking for flexible workspaces. The company recently launched two new co-working centres in Navi Mumbai and Andheri, Mumbai, each spanning over one lakh square feet and offering a total seating capacity of 3,000. These expansions are part of Innov8’s broader strategy to cater to the increasing demand for managed office space in both tier-I and tier-II cities.
In line with its aggressive expansion plans, Innov8 intends to add four million square feet of managed office space in India over the next three years. The company is focusing on tier-I cities, where demand for flexible workspaces has surged, driven by the growing startup culture, the need for scalable office solutions, and the shift towards hybrid working models post-pandemic. The funding round comes on the back of strong financial performance. Innov8 reported a significant increase in its profits, with a post-tax profit of ₹62 crore for FY24, compared to just ₹2.5 crore in FY23. This sharp rise in profitability, driven by its expansion and operational efficiencies, demonstrates the company’s growing market position and its ability to scale effectively.
The ₹110 crore raised will be used to further strengthen Innov8’s infrastructure, including technology upgrades, strategic acquisitions, and forming new partnerships. By investing in these areas, Innov8 aims to not only enhance its existing offerings but also explore niche segments in the flexible workspace market, ensuring that it stays ahead of the curve as demand for co-working spaces continues to evolve. Innov8’s success in this funding round marks a significant milestone in the Indian co-working space industry. As businesses increasingly seek flexible and cost-effective office solutions, Innov8 is well-positioned to capitalise on this growing trend. With strong investor backing, an ambitious expansion plan, and a clear focus on meeting the diverse needs of modern businesses, Innov8 is set to become a dominant player in the Indian office space market in the coming years. Innov8’s ability to raise ₹110 crore at a ₹1,000 crore valuation is a testament to its strong growth prospects and investor confidence. The funds raised will enable the company to scale its operations, expand into new cities, and continue offering innovative co-working solutions that cater to India’s dynamic business landscape.
