The co-working industry is getting a boost gradually. One notable one is Incuspaze. It has lately successfully raised $8 million in its maiden funding round led by the India Inflection Opportunity Fund (IIOF) and a couple of more financial institutions. It is an important moment for the workspace solution provider. It has set the stage for expansive growth as well as enhanced services.
Incuspaze is being led by Sanjay Choudhary. In its journey of eight years the company has evolved rapidly. It now boasts a portfolio of 3 million square feet across 44 locations in 18 cities. It has recently taken a lease of 220,000 square feet in Gurugram’s M3M Urbana. It underscores the firm’s ambitious expansion plans. It is also expanding in southern India and mainly to focus in cities like Bengaluru, Chennai and Hyderabad.
It has proved a positive financial performance. It reported a threefold increase in revenue for the fiscal year ending in March 2023 (FY23). The figure reached to Rs 50 crore, which means up from Rs 14.84 crore in FY22. Moreover, it significantly reduced its losses from Rs 5 crore to Rs 98 lakh during the same period.
The timing of fresh funding round aligns with the gradual growth in the demand for flexible office spaces in India. A report released last month by property consultancy Colliers reveals that the flexible office space segment in India’s top six cities saw highest-ever quarterly demand. Bengaluru and Delhi-NCR accounted for 65% of the demand.
The involvement of the India Inflection Opportunity Fund (IIOF) is noteworthy. Pantomath Financial Services Group manages IIOF and it closed pre-IPO fund at $60 million last November. Hence, the strategic investment in Incuspaze suggests a potential roadmap for an IPO.
