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Co-working space startup iSprout has raised Rs 40 crore through the issuance of its first secured bond. It was subscribed by Vivriti Asset Management (VAM), a leading performing credit asset manager with investments of >Rs 3,000 crore in mid-market enterprises.
According to the company's statement, the raised capital would be utilized to grow and extend its company assets, with a significant percentage of the funds going towards increasing the presence of iSpout in the existing markets of Hyderabad and Bengaluru.
The startup will also focus on developing proprietary technologies to automate crucial procedures.
Filling the gap for managed office spaces
iSprout was founded in 2016 by Sundari Patibandla, Sreeni Tirdhala, CA Sesshaa Prasad, and Vijay Oddiraju to fill the very noticeable gap and the demand for managed office spaces for startups and established businesses.
Sundari Patibandla, CEO and Co-Founder, said, “iSprout’s core strength lies in providing premium managed office solutions with five-star rated services. The faith shown by Vivriti Asset Management in our vision to create a better and more inviting work environment has resulted in helping us fund our dreams of slow but steady expansion across India.”
“Our inspiring workspaces are designed with the blend of rich Indian culture and western corporate functionality. With the Managed Office space sector growing rapidly in the last 4 -6 quarters, iSprout is in a unique position to grow exponentially in the coming years," said Sreeni Tirdhala.
According to Sreeni, iSprout grew by 200% in the last 6 quarters and aims to capture a very sizable share in the premium managed space market growth.
Why did Vivriti Asset Management invest in iSprout?
Mohamed Irfan, Fund Manager at VAM said, “Managed office spaces have had a very good tailwind especially post-pandemic, where the needs of both corporates and employees have evolved. The ability to deliver a top-not-notch experience for these stakeholders while prudently managing P&L will define which players can scale. iSprout is a profitable specialist in the space with a good value proposition, and its performance metrics align well with the investment thesis of our fund. We are pleased to invest in them to catalyze their growth.”
Delivering office spaces of 2 lakh SFT
iSprout has recently opened new office spaces totalling 200,000 square feet in Divyashree Trinity and My Home Twitza, Hyderabad, both of which have reached full occupancy.
The company plans to open its thirteenth centre, offering over 150,000 square feet of space, in the conveniently located Aurobindo Orbit by November 2023
The startup looks to surpass 1 million square feet and achieve a turnover of more than Rs 120 crore by the end of the 2023-2024 financial year and is aiming for significant growth in the next 1-2 years, with plans to expand properties in its current markets of Hyderabad, Bangalore, Chennai, and Pune, and to enter new markets in Delhi NCR and Kolkata.
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