Co-working startup Incuspaze raised $8 M maiden funding from IIFO, others

In its first fundraising round, workspace solution provider Incuspaze raised about $8 million, with the India Inflection Opportunity Fund (IIOF) and other financial institutions leading the charge.

According to a statement from the business, this strategic investment will strengthen Incuspaze’s capacity to offer premium workspace solutions to MSMEs, startups, and enterprises.

According to Incuspaze, it has a 3 million square foot portfolio spread across 18 cities and 44 locations. The company just leased 220,000 square feet in the M3M Urbana project in Gurugram.

Under the direction of Sanjay Choudhary, the eight-year-old company wants to grow its clientele in southern India, specifically in Bengaluru, Chennai, and Hyderabad. Among its top customers are PhonePe, Byju’s, Flipkart, and Girnarsoft.

Incuspaze reported that its operating revenue for the fiscal year ending in March 2023 (FY23) increased by more than three times to Rs 50 crore from Rs 14.84 crore in FY22. It was able to reduce losses to Rs 98 lakh from Rs 5 crore in FY23. The annual report for the most recent fiscal year (FY24) has not yet been filed by Incuspaze.

A report released in June 2024 by real estate consulting firm Colliers states that the demand for flexible office space in India’s top six cities reached an all-time high during the April–June quarter.

Alone, Bengaluru and Delhi-NCR supplied 65% of the total demand.

The India Inflection Opportunity Fund (IIOF), a pre-IPO fund managed by Pantomath Financial Services Group, closed in November of last year for $60 million. Although Incuspaze has not disclosed its IPO plans, the strategic funding from the IIOF suggests a clear path toward a public listing, given that the investment firm primarily backs IPO-bound businesses.

Awfis is the first Indian startup listed on the stock exchange, and it happened in the co-working space. Recently, Smartworks, another co-working startup, changed its status to public company and moved closer to possible public listing.