OYO-Owned Innov8 Forays Into Managed Office Space Segment

Travel tech major OYO-owned startup Innov8 has forayed into the managed office space with the launch of a new vertical for the segment.

Innov8 plans to add 4 Mn square feet of managed office space in India in the coming three years. The startup has allocated an investment of INR 50 Cr towards the development of the new infrastructure. 

In a statement, it said that it will focus on building Grade A buildings, with premium quality infrastructure and amenities. Further, Innov8 plans to build its largest managed office space project in Mumbai as part of the project. 

“By entering the managed office space sector and undertaking this large-scale project in Mumbai, we’re positioning ourselves to meet the evolving needs of businesses in one of India’s most dynamic cities. We’ve had some early success here and we plan to replicate this across markets,” Innov8 founder Ritesh Malik said. 

Founded in 2015 by Malik, Innov8 offers premium coworking space across nine cities – Delhi NCR, Mumbai, Pune, Chennai, Bangalore, Ahmedabad, Hyderabad, and Indore. The startup claims to have over 350 brands, like Swiggy, PhonePe, Jio Saavn, working in its office spaces. 

Innov8 was acquired by OYO in an all-cash deal worth about INR 220 Cr ($31.84 Mn) in 2019. 

The development comes at a time when OYO has been on an expansion spree of its own. Marking one of its biggest acquisitions till date, the travel tech startup acquired the US-based hospitality chains Motel 6 and Studio 6 parent G6 Hospitality for $525 Mn in September. It also acquired Paris-based premium rental homes company Checkmyguest for INR 230 Cr ($27.4 Mn) in a cash and stock deal. 

On the financial front, OYO turned profitable in the fiscal year 2023-24 (FY24). It posted a profit of INR 229.5 Cr during the year as against a net loss of INR 1,286.5 Cr in FY23. 

Innov8’s expansion into the managed office space comes at a time when multiple players in the coworking and managed office space arena are making a beeline towards the bourses. 

In May, Peak XV Partners-backed Awfis made its debut on the BSE at a premium of 12.8% to the issue price. Following that, Smartworks and DevX filed their draft red herring prospectus with market regulator Securities and Exchange Board of India (SEBI). 

Another coworking space provider IndiQube has also started its preparation for an IPO. 

Meanwhile, OYO has put its plans to get listed on hold. The startup withdrew its IPO papers in May and plans to refile the papers after it refinances its Term Loan B (TLB).