Innov8 Raises Growth Capital at Rs 1,000 Crore Valuation to Fuel Co-Working Expansion

 

OYO-owned co-working brand Innov8 has sold a 3 percent stake at a valuation of Rs 1,000 crore, marking a strategic move to accelerate its expansion amid surging demand for flexible workspaces. The transaction underscores growing investor confidence in India’s managed office space sector, which continues to thrive post-pandemic.

Key highlights of the funding round

• The stake sale was led by Raymond Family Office, which acquired nearly 2 percent of Innov8’s equity
• The capital infusion will support Innov8’s goal of scaling from its current 30-plus centers to 100 centers by the end of 2025
• Innov8 reported a profit after tax of Rs 62 crore in FY24, a sharp rise from Rs 2.5 crore in FY23, reflecting strong operational leverage
• The company has maintained over 90 percent occupancy across its centers, driven by demand from startups, SMEs, and large corporates

Strategic context and investor interest

• This is the second major funding round in recent months; in January 2025, Innov8 raised Rs 110 crore by diluting 10 percent equity to investors including family offices of Gauri Khan, Mankind Pharma, Rupa Group, and Jagruti Dalmia
• The latest round further validates Innov8’s business model, which combines premium design, tech-enabled services, and scalable infrastructure
• The funds will be used to expand into Tier 1 and Tier 2 cities, upgrade existing facilities, and enhance digital offerings for enterprise clients

Market dynamics and sector outlook

• The co-working sector in India is witnessing a structural shift, with corporates increasingly opting for managed office solutions to reduce capex and improve flexibility
• According to Vestian, co-working operators are expected to manage over 100 million square feet of office space in India by 2026
• Innov8’s growth aligns with this trend, positioning it as a key player in the evolving workspace ecosystem alongside peers like WeWork India and Awfis

Future outlook

With a robust financial profile, strong investor backing, and a clear expansion roadmap, Innov8 is poised to deepen its footprint in India’s high-growth co-working market. The company’s ability to blend profitability with scale makes it a standout in a sector that is rapidly redefining the future of work.

Sources: Business Standard, Economic Times, Rediff Money, Devdiscourse, Moneycontrol.

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