OYO’s Innov8 Offloads 3% Stake at ₹1,000 Cr Valuation

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OYO’s Innov8, a standout in India’s flexible workspace game, has just offloaded a 3 percent equity stake at a ₹1,000 crore valuation. This move isn’t just for show—it signals a clear bet on growth. The Raymond Family Office has taken nearly 2 percent, while other investors picked up the balance. Just earlier this year, Innov8 raised ₹110 crore by selling 10 percent to backers such as Gauri Khan and Mankind Pharma.

Founded in 2015 by Ritesh Malik, Innov8 has grown into a formidable presence with 45+ centers across ten cities, from Delhi NCR to Bengaluru. This cash injection aims to fund further expansion, riding the boom in remote and freelance work. They’re competing head‑on with the likes of Awfis, 91springboard, COWRKS, and WeWork India. Impressively, Innov8’s profit after tax leapt from ₹2.5 crore to ₹62 crore in FY 2023‑24, thanks to its light‑asset strategy. This fresh capital arrives at a critical moment for scaling operations.

1. Introduction to OYO’s Innov8 and Stake Sale

Hold on tight—OYO’s Innov8 just let go of 3 percent of itself, and at a hefty ₹1,000 crore valuation. The Raymond Family Office swooped in for almost 2 percent, with unnamed backers taking the rest. What’s striking here is the momentum: family offices are circling, drawn by Innov8’s vision and traction.

Founded by Ritesh Malik in 2015, Innov8 has become a major force in India’s workspace revolution. As part of the OYO ecosystem, it brings together tech, hospitality, and coworking in urban hubs. Now, with fresh funds, it’s aiming to double capacity—to around 50,000 seats across Tier I cities. Bold, ambitious, and not without challenges—a true test for any expansion strategy.

2. Innov8’s Business and Revenue Model

2.1 Working Model of Innov8

Here’s where it gets interesting: Innov8 leases spaces, fits them out, and then subleases. It’s asset-light, which means nimble and scalable. Varied users—freelancers, SMBs, enterprises—all find flexible desks, dedicated zones, meeting rooms, event halls. A melting pot of productivity.

2.2 Revenue Streams

Money trickles in through subscriptions for desks and offices. Hosts have also turned event rentals, meeting rooms, printing services, and even café income into cash channels. This diverse income mix cushions the company amid economic ups and downs.

3. Funding History and Investor Profile

3.1 Previous Funding Rounds

January 2024 saw Innov8 raise ₹110 crore by selling 10 percent to high-profile investors—Gauri Khan, Mankind Pharma, Rupa Group, and Jagriti Dalmia’s family office. The round oversubscribed 2.7x, which speaks volumes about investor appetite and confidence.

3.2 Current Investors

This round’s star is the Raymond Family Office, scooping up 2 percent. Family offices now play long-game—it’s not just money, it’s strategic vision. The remaining 1 percent hints at more cheerleaders, though unnamed.

3.3 OYO’s Role

OYO quietly backstops Innov8, weaving in its tech, reach, and operational muscle. No public statements this round, but the support is implicit—and substantial.

4. Innov8’s Founder and Startup Journey

Ritesh Malik launched Innov8 with a simple, smart idea: rent smart, build community, grow fast. Hackathons in Delhi transformed into multiple India hubs. The startup’s edge? A hybrid of fast expansion and operational discipline. Their clients—Swiggy, PhonePe, Jio Saavn, PepsiCo—speak for the brand’s rising credibility.

5. Services and Solutions Offered by Innov8

Co-working desks, private offices, meeting rooms, event spaces, community events, cafes—the list goes on. Innov8 isn’t just renting desks. It’s selling a vibe, a network, a workspace ecosystem.

6. Problem Statement: Challenges Innov8 Addresses

Skyrocketing real-estate costs, rigid leases, fragmented communities—these plague startups and freelancers. Innov8 steps in with affordability, flexibility, and infrastructure—minus ownership headaches. As hybrid models rule, this offering fits like a glove.

7. Industry Growth Trends and Market Outlook

Globally, the flexible workspace business is skyrocketing toward a projected $40.47 billion by 2030, growing at 15.7 percent annually. In India, startups, SMEs, GICs—all chase flexible offices. While WeWork, Awfis, 91springboard, COWRKS keep expanding, Innov8 is carving its own path with profitability at its core.

8. Competitors in the Flexible Workspace Sector

• Awfis: Huge corporate focus, backed by GCC demand.
• WeWork India: Big but bruised by regulatory issues.
• 91springboard: Startup‐centric, community vibe strong.
• COWRKS: Premium city hubs.
• Bhive: Early-stage startups focus; vibrant events.

Innov8 differentiates by blending scalability, cost control, and tech-driven experience.

9. Financial Performance and Growth Metrics

Going from ₹2.5 crore to ₹62 crore PAT in one year? That’s not luck—it’s strategy. From 17,000 to a planned 50,000 seats by next year shows serious intent. Financials like these are rare in coworking.

10. Learning for Startups and Entrepreneurs

Having skin in investors, flexibility in model, focus on margins—innov8 nails it. Strategy matters: starting strong in Tier I cities, going asset-light, leaning on tech. Each move shows calculated ambition.

About Foundlanes

foundlanes.com is tracking stories like this because they matter—they shape India’s entrepreneurial landscape. Innov8’s stake sale, for instance, signals both sector-level opportunity and investor appetite. We’ll keep covering these trends and decisions—because founders who read this, do something about it.