OYO-Backed Innov8 Nets INR 110 Cr By Diluting 10% Stake

OYO-Backed Innov8 Nets INR 110 Cr By Diluting 10% Stake

SUMMARY

OYO-backed coworking space Innov8 has closed its primary funding round of INR 110 Cr ($12.7 Mn) at a valuation of INR 1,000 Cr

The family offices that participated in the round included Mankind Pharma, Gauri Khan, Rupa Group and Jagruti Dalmia

The company diluted 10% of its stake, facilitated by InCred, to raise the capital

Two months after sharing its fundraising plans, OYO-backed coworking space Innov8 has closed its primary funding round of INR 110 Cr ($12.7 Mn), led by a clutch of prominent family offices, at a valuation of INR 1,000 Cr.

The family offices that participated in the round included Mankind Pharma, Gauri Khan, Rupa Group and Jagruti Dalmia. 

The company diluted 10% of its stake, facilitated by InCred, to raise the capital. It said in a statement that the issue was oversubscribed by 2.7X.

Innov8 plans to use the capital to fund acquisitions, technology upgrades, partnerships, and 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 at OYO.

Founded in 2015 by Ritesh Malik, Innov8 offers premium coworking space across nine places – Delhi NCR, Gurgaon, Noida, Mumbai, Pune, Chennai, Bangalore, Ahmedabad, and Hyderabad. The startup claims that over 350 brands, including Swiggy, PhonePe, Jio Saavn and PepsiCo,  are using its office spaces. 

Innov8 runs 45 centres accommodating around 17,000 seats. The startup plans to double its centres and increase its seating capacity to 50,000 by next year. It is also expanding its presence in existing Tier 1 cities by optimising operations in these locations, instead of exploring new grounds. 

In terms of financial performance, Innov8 said its profit after tax (PAT) jumped multifold to INR 62 Cr in 2023-24 (FY24) from INR 2.5 Cr a year ago. Malik, however, declined to comment on revenue generated by the company in FY24.

Innov8 competes against the likes of Awfis, 91springboard, COWRKS, Bhive and WeWorkIndia in the shared workspaces market.

Updated at 12:20 PM