Innov8, a co-working firm owned by Oyo, has sold a 3% stake in the company to investors at a valuation of Rs 1,000 crore as it looks to expand the business amid rising demand for flexible offices, sources told FE. They added that the round was led by the Raymond Family Office, which acquired around 2% stake in the company.
Oyo did not reply to FE’s queries till the time this report went to the press.
Innov8 raised Rs 110 crore from investors in January, selling around 10% of the stake to a group of investors, including the family office of Gauri Khan, Mankind Pharma, Rupa Group, and Jagruti Dalmia.
Founded in 2015 by Ritesh Malik, Innov8 has over 30 centres across 10 major cities, namely Delhi, Gurugram, Noida, Mumbai, Pune, Chennai, Bengaluru, Ahmedabad, Hyderabad, and Indore.
Sources suggest that it has seen over 90% occupancy in its centres, driven by rising demand for flex office spaces. According to real estate consultancy Vestian, co-working operators will hold more than 100 million square feet of office space by the end of 2026.
Industry experts suggest that flex offices allow companies to keep their capital expenditure low and provide flexibility. Recently, some of these companies have also witnessed a jump in profitability due to continued demand.
To tap the rising demand, Innov8 is planning to more than double its co-working centres to 100 centres by December-end. In 2023-24, Innov8 reported a profit after tax of Rs 62 crore, as compared to Rs 2.5 crore in FY23.
Notably, it has around 8,000 employees and counts Swiggy, Tata Digital, Paytm, Whirlpool, BBC News, Nykaa and PepsiCo as some of its clients.
