Oyo's Innov8 sells 3% stake at ₹1K cr valuation to expand co-working biz

Oyo-owned co-working firm Innov8 has sold 3 per cent stake in the company to investors at a valuation of ₹1,000 crore to expand its business amid rising demand of flexible workspace, according to sources.

Raymond Family Office has emerged as the lead investor, acquiring nearly 2 per cent share, they added.

Global travel tech platform Oyo Group declined to comment.

In January this year, Innov8 had raised ₹110 crore from investors, diluting 10 per cent of its equity to a clutch of high-profile investors including family offices of Gauri Khan, Mankind Pharma, Rupa Group, and Jagruti Dalmia.

Founded in 2015 by Ritesh Malik, Innov8 has more than 30 centres across 10 cities -- Delhi, Gurugram, Noida, Mumbai, Pune, Chennai, Bengaluru, Ahmedabad, Hyderabad, and Indore.

Innov8 has seen over 90 occupancies in its centres, driven by rising demand for flexible office spaces. It plans to reach 100 centres by end of this year.

Innov8 has reported a profit after tax of Rs 62 crore for 2023-24 compared to ₹2.5 crore in FY23.

The demand for managed flexible workspaces has risen post-Covid pandemic. Corporates of all sizes are preferring to set up offices in co-working centres to save on capital expenditure, besides having flexibility, according to property experts.

As per the data by real estate consultant Vestian, co-working operators will hold more than 100 million square feet of office space by the end of 2026.

Oyo Group manages over 1.5 lakh hotel and home storefronts in more than 35 countries. It also offers a range of tech-driven products and solutions to businesses in the hospitality sector. Its global presence includes the US, Europe, Southeast Asia and the UK.