Family offices bet on OYO’s co-working space unit
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Family offices bet on OYO’s co-working space unit

By Priyal Mahtta

  • 29 Jan 2025
Family offices bet on OYO’s co-working space unit
Credit: 123RF.com

A number of family offices, including those of Mankind Pharma’s promoters, movie producer Gauri Khan, Rupa Group and Jagruti Dalmia, have invested in hospitality firm OYO’s co-working space arm Innov8. 

Innov8, which was founded about a decade ago and acquired by OYO in 2019, secured Rs 110 crore in primary capital, it said in a statement. Family office investors chipped in with about 55% of the amount. The funding was done at a pre-money valuation of Rs 1,000 crore.  

According to the statement, Innov8 diluted a 10% stake in the round, which was facilitated by financial services firm InCred. 

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The company plans to use the fresh capital for growth opportunities such as acquisitions, technology upgrades, partnerships, and expansion into niche segments. The co-working firm also plans to double its centres in India to 100 this year. 

“Over the past few years, we have prioritized long-term, sustainable growth. This capital infusion will not only strengthen our financial stability but also lay a robust foundation for future expansion,” said Pankhuri Sakhuja, business head, Innov8.  

The company aims to expand in Tier-I cities including Delhi, Gurgaon, Noida, Mumbai, Navi Mumbai, Pune, Chennai, Bangalore, Ahmedabad, and Hyderabad. It recently launched two centres in Navi Mumbai and Mumbai's Andheri area. Each centre has a seating capacity of 3,000.   

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Among other growth plans, the firm plans to enter the managed working space segment where players such as IndiQube and SimpliWork operate. It plans to add about 4 million square feet of managed office space to its portfolio over the next three years.   

The co-working space company is present in 10 cities. According to VCCEdge, it clocked Rs 52 crore as revenue from operations in the last fiscal year and a net profit of nearly Rs 8 crore on a standalone basis.  

The co-working segment has tapped the interest of several family offices in India. For instance, Yadu Hari Dalmia, the chairman and non-executive director at Dalmia Bharat Ltd is a shareholder in recently listed co-working company Awfis. 

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