Incuspaze, a workspace solution provider, enabled a huge investment of $8 Mn led by India Inflection Opportunity Fund along with other financial institutions. This funding is huge for the company as it will increase its ability to offer the best workspace solutions to enterprises, MSMEs, and startups.
PC: Coworker
Incuspaze is already boasting a portfolio of 3 million square feet across 18 cities and 44 locations. Just recently, they have leased a whopping 220,000 square feet of space in Gurugram’s M3M Urbana project, roughly the size of a small city given over to coworking spaces. But that doesn’t seem to deter them at all. With Sanjay Choudhary at the helm, the company wants more: deeper forays into southern India are planned for Bengaluru, Chennai, and Hyderabad. Some of their top clients include big names like PhonePe, Byju’s, Flipkart, and Girnarsoft. Operating revenue surged three times in FY23 to Rs 50 crore as compared to Rs 14.84 crore in FY22.
That is quite a jump! Plus, they reduced their losses to Rs 98 lakh from Rs 5 crore. Now, that is what you call a turn-around! They have not yet filed their annual report for the last FY24, so it remains to be seen how they fared during recent times. According to a June 2024 report by property consultancy Colliers, demand for flexi office spaces in the top-6 cities of India saw their highest-ever quarterly demand in the period of April-June. Bengaluru and Delhi-NCR contributed 65 percent to this overall demand. Looks like the co-working space trend is on fire!
The India Inflection Opportunity Fund, leading the funding round, closed its pre-IPO fund at $60 million back in November of last year. Incuspaze hasn’t commented on any IPO plans, but this strategic investment from IIOF hints at a possible listing on the bourses in times to come. Normally, the IIOF backs those firms preparing for an initial public offer, so this could be a possible signal.
In the co-working space, Incuspaze isn’t lonely when it comes to eyeing the public markets. Awfis was the first Indian co-working startup to list on the bourse. Recently, another co-working startup, Smartworks took one step toward a possible public listing by turning itself into a public company.
This fresh injection of funds is likely to bolster their expansion plans and enhance their offerings. With a strong portfolio, great client roster, and demand on an overall upswing for flexible offices, Incuspaze would easily cash in on this boom of the co-working trend in India.
In conclusion, the $8 million funding round is big for Incuspaze. It affirms the fact that the company has been on a growth path, having immense potential within the shared workspace. In light of further expansion plans, with a possible IPO looming, it is certainly one to watch.
