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Ritesh Malik
OYO-owned coworking firm Innov8 has raised Rs 110 crore (about $13 million) in a primary funding round led by prominent family offices, including Mankind Pharma, Gauri Khan, Rupa Group and Jagruti Dalmia, with the round facilitated by InCred.
The company diluted 10% of its stake, reaching a valuation of Rs 1,000 crore (around $120 million).
According to Innov8, the issue was oversubscribed by 2.7 times, with strategic investors expressing interest in acquiring the full stake on offer.
New funding supports expansion
The newly raised capital is set to drive Innov8’s growth through acquisitions, technology upgrades and partnerships, as well as expansion into niche segments.
"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," said Rakesh Kumar, Group Chief Financial Officer of OYO.
Founded in 2015 by Ritesh Malik and operating as a separate entity under OYO since its acquisition in March 2019, Innov8 plans to double its coworking centres in India to 100 by 2025. It also aims to add 4 million square feet of managed office space across the country in the next three years.
The company currently has more than 45 centres in cities like Delhi, Gurgaon, Mumbai, Pune, Chennai, Bengaluru, Ahmedabad, Hyderabad and Indore, hosting more than 17,000 employees from major brands such as Swiggy, IndusInd Bank, Jio Saavn, PhonePe and Tata Digital.
Growing demand for flexible workspaces
Innov8 claims to have achieved over 90% occupancy in its existing facilities, driven by rising demand for flexible office setups. To meet this increasing need, the company recently opened two large centers in Mumbai—one in Navi Mumbai and another in Andheri.
Each covers more than 1 lakh square feet and accommodates up to 3,000 seats, marking the largest facilities Innov8 has launched so far.
Financial performance
In the past year, Innov8’s net profit grew significantly from Rs 2.5 crore in FY23 to Rs 62 crore in FY24, including one-time exceptional items.
This makes it one of the few flex space providers in India to maintain net profitability.
"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," Pankhuri Sakhuja, Business Head of Innov8, said.