OYO-owned coworking startup Innov8 said it is in talks with potential investors to raise Rs 100 crore in a primary funding round at a valuation of Rs 1,200 crore. The investment will be used to fund the company’s expansion plans to double its coworking centres in India to 100 in 2025.

Moreover, the capital would be deployed towards acquisitions for inorganic growth, technology upgrades, partnerships, and expansion into niche segments.

The fundraising efforts are being led by InCred, the company said in a statement.

Innov8 said it is focused on deepening its presence in existing Tier 1 cities including Delhi, Gurgaon, Noida, Mumbai, Navi Mumbai, Pune, Chennai, Bangalore, Ahmedabad, and Hyderabad rather than expanding into new regions. It has over 30 centres across these cities.

The company is looking to add 4 million square feet of managed office space in India in the coming three years.

Founded in 2015, Innov8 said it has seen over 90 per cent occupancy in its centers and caters to clients including Swiggy, Tata Digital, Apollo24/7, Paytm, Razorpay, IndusInd Bank, Pepsico, Oppo, Lenskart.com, Nykaa, Big Basket, OLA, Phonepe, etc.

OYO acquired Innov8 in 2019 for reportedly $30 million to get into the commercial real estate market under the brand name OYO Workspaces.

In October this year, the startup expanded to the managed office spaces with plans to enhance footprint by 4 million square feet in three years. The company has invested more than Rs 50 crore to develop the managed office spaces.

India’s flexible workspace market is likely to grow to 126 million sq ft, at a compound annual growth rate of 15 per cent, with a market size of $9 billion by 2028, according to a study by Avendus Capital in March this year.