In a notable move in India’s flexible workspace sector, Oyo-owned Innov8 has raised fresh capital at a valuation of ₹1,000 crore, selling 3% stake in the company. The deal reflects growing investor interest in the coworking space industry, especially amid the evolving dynamics of hybrid and flexible work models.
Credits: NDTV Profit
Raymond Family Office Leads the Round
The funding round was led by the Raymond Family Office, which acquired 1.9% stake in Innov8, according to people familiar with the matter who spoke to NDTV Profit on condition of anonymity. The Raymond Family Office, backed by the promoters of the Raymond Group, has been actively diversifying into emerging sectors, with a keen focus on startups in technology, health, consumer goods, and now — flexible workspaces.
This investment signifies continued confidence in the coworking model, especially when seen in context with broader startup ecosystem trends.
Rapid Expansion in the Pipeline
Buoyed by investor confidence and the return of in-office culture in hybrid forms, Innov8 now aims to double its number of coworking centres to 100 by the end of this year. The company already has a notable presence in Delhi, Gurgaon, Noida, Mumbai, Pune, Chennai, Bengaluru, Ahmedabad, Hyderabad, and Indore.
With over 8,000 professionals working from Innov8’s workspaces, the platform is already a preferred hub for big-name brands like Swiggy, PhonePe, IndusInd Bank, Tata Digital, and Jio Saavn.
Previous Round Featured Star Investors
This isn’t the first time Innov8 has drawn high-profile interest. In January 2025, the company raised ₹110 crore by diluting 10% equity, attracting investments from elite family offices, including those of Gauri Khan, Mankind Pharma, Rupa Group, and Jagruti Dalmia. That round set the stage for its ₹1,000 crore valuation and has likely fueled the aggressive expansion strategy Innov8 is now pursuing.
Oyo’s Acquisition and IPO Push
Innov8 was acquired by Oyo Hotels & Homes in 2019 in an all-cash deal worth $30 million, marking Oyo’s foray into the managed workspace segment. As Oyo prepares for its long-delayed IPO, Innov8 is shaping up to be a valuable asset on its books.
According to sources, Oyo founder Ritesh Agarwal recently met with representatives from SoftBank Group, its largest shareholder, to discuss the India listing. Agarwal, joined by investment banks including Citi, Jefferies, Goldman Sachs, Axis Capital, and ICICI Securities, presented a proposal to dilute 10% equity at a valuation of at least $7 billion.
Although the meeting didn’t yield a lead banker, it’s understood that such preliminary discussions are standard for any IPO roadmap. Dealmakers are expected to return to the table with a more refined plan soon.
SoftBank’s Approval Key to IPO Timing
SoftBank holds over 40% stake in Oyo, while Agarwal himself retains over 30%. With such heavy influence, SoftBank’s nod will be crucial in deciding when and how the IPO unfolds. The Japanese conglomerate’s stance on valuation and timing will likely determine how Oyo proceeds, especially after its earlier IPO attempt was shelved due to pandemic disruptions.
The Road Ahead
Both companies seem well-positioned, with Oyo picking up steam in the post-pandemic recovery phase and Innov8 expanding consistently in India’s vibrant coworking sector. Strong investor confidence and a positive future for flexible workspaces in India are demonstrated by Innov8’s recent capital infusion, solid valuation, and ambitious plans for quick growth.
In the upcoming months, all eyes will be on Oyo and its subsidiaries, such as Innov8, as they prepare for public scrutiny and deal with investor expectations, growth, and profitability.
Credits: Inc 42
Conclusion:
To sum up, Innov8’s most recent fundraising effort, valued at ₹1,000 crore, indicates that investors have a high level of faith in the coworking industry and the company’s aggressive growth strategies. With the support of well-known companies like the Raymond Family Office and former family investors, Innov8 is quickly establishing itself as a major force in India’s flexible workspace market. Given Oyo’s long-awaited initial public offering (IPO), Innov8’s growth trajectory may prove to be a strategic advantage in terms of both financial and market placement within the group’s larger strategy.
