Coworking Startup iSprout Bags INR 60 Debt From Tata Capital

SUMMARY

The startup plans to use the capital to accelerate the launch of new centres, strengthen enterprise-grade infrastructure, and expand its fast-growing managed office portfolio

Besides, iSprout will invest in tech upgrades, workspace customisation, and end-to-end facility management capabilities

Founded in 2016 by Sreenivas Tirdhala and Patibandla, iSprout offers managed offices and coworking spaces equipped with business support services such as company setup and payroll management

Hyderabad-based coworking startup iSprout has raised INR 60 Cr (around $6.6 Mn) in debt funding from Tata Capital, giving the managed office operator fresh firepower to scale its footprint across major Indian metros.

The startup plans to use the capital to accelerate the launch of new centres, strengthen enterprise-grade infrastructure, and expand its fast-growing managed office portfolio.

Besides, iSprout will invest in tech upgrades, workspace customisation, and end-to-end facility management capabilities.

“This investment strengthens iSprout’s position to further expand into the high-growth business hubs, allowing us to capture a larger market share in the flexible workspaces and scale with disciplined, asset-strategic growth,” said Sundari Patibandla, cofounder & CEO of iSprout.

Founded in 2016 by Sreenivas Tirdhala and Patibandla, iSprout offers managed offices and coworking spaces equipped with business support services such as company setup and payroll management. It currently operates 25 centres across nine cities, with a 2.5 Mn sq. ft. portfolio that includes spaces under rapid development.

Cofounder and chief strategy officer Tirdhala said the startup has grown 10X in the last five years.

iSprout raised $4 Mn in 2022 in its pre-Series A round from private investors, including a director from an infrastructure firm, to expand in existing markets and enter new ones like Delhi NCR and Mumbai. Following this, in October 2023, it raised $4.8 Mn from Vivriti Asset Management.

The startup competes with listed players like DevX, WeWork India, Awfis, IndiQube, Smartworks and unlisted ones like Stylework, Innov8 in the fast-growing managed office market. Four of the five listed players in the segment – DevX, WeWork India, IndiQube and Smartworks – went public this year.

As per Research And Markets, Indian coworking spaces market was touted at $14.91 Bn in 2023 and is projected to reach $40.47 Bn by 2030. Riding this momentum, iSprout is eyeing a 3 Mn sq. ft. portfolio and an eventual IPO as demand surges across tech hubs.