Innov8’s Strategic Stake Sale at ₹1,000 Crore Valuation

In a strategic move to fuel its expansion into India’s booming co-working segment, OYO-owned Innov8 has sold a 3% stake at a valuation of ₹1,000 crore. The Raymond Family Office emerged as a key investor, acquiring nearly 2% of the stake. The funds will be used to aggressively scale Innov8’s footprint, targeting 100 centres by the end of 2025.

A) Stake Sale Snapshot

• Stake Sold: 3% of total equity

• Valuation: ₹1,000 crore

• Lead Investor: Raymond Family Office (~2% acquired)

• Purpose: Expansion of flexible workspace network

• Date of Announcement: June 20, 2025

This is not Innov8’s first fundraising activity in 2025. In January, it raised ₹110 crore from top family offices including:

• Gaurav Khemka (Family Office of Khemka Group)

• Mankind Pharma

• Rupa Group

• Jagruti Dalmiya

B) Company Overview

• Founded: 2015 by Ritesh Malik

• Ownership: Subsidiary of OYO Group

• Current Operations: 30 centres in 10 cities

• FY24 Profit After Tax: ₹62 crore

• FY23 Profit: ₹25 crore

• Goal: 100 centres by end of 2025

• Current Co-working Space Capacity: Over 90 occupancies across its centres, spanning a combined operational area of over 1 million square feet.

Cities served include: Delhi, Gurugram, Noida, Mumbai, Pune, Chennai, Bengaluru, Ahmedabad, Hyderabad, and Indore.

C) Market Trends: Booming Demand for Flexible Workspaces

The market for managed co-working spaces has surged post-COVID. Demand drivers include:

• Cost-saving for corporates on real estate

• Shift towards hybrid and remote work

• Need for scalable, plug-and-play office solutions

Industry Projection:

By the end of 2026, co-working operators are expected to command over 100 million sq. ft. of office space in India (source: Vestian).

D) OYO’s Broader Vision

OYO is streamlining its portfolio and doubling down on asset-light, high-growth verticals:

• Operates in 35+ countries

• Over 1.5 lakh hotels and storefronts globally

• Focus on tech-driven property solutions

• Presence in US, UK, Southeast Asia, and Europe

Innov8 fits into this strategy as OYO aims to unlock value from fast-growing subsidiaries.

E) Why It Matters for Unlisted Market Investors

• Valuation Insight: At ₹1,000 crore, Innov8’s valuation provides a benchmark for potential future listings in the co-working space.

• Profitability: Rare to see startups in the flexible workspace model reporting consistent PAT growth (₹62 crore in FY24).

• Growth Outlook: Aggressive scaling with strong investor backing signals future capital activity—IPO or strategic acquisition.

• OYO Synergy: As an OYO subsidiary, Innov8 benefits from operational synergies, global tech stack, and funding channels.

Final Word

With solid profitability, ambitious expansion plans, and validation from marquee investors like Raymond Family Office, Innov8 is emerging as a frontrunner in India's co-working space.

UnlistedZone Take: For investors tracking unlisted opportunities, Innov8’s progress is worth watching, especially as OYO prepares for a potential public listing in the future.