Incuspaze, a leading workspace solution provider, has secured approximately $8 million in its maiden funding round.
This investment was led by the India Inflection Opportunity Fund (IIOF) along with other financial institutions. The strategic infusion of capital is set to enhance Incuspaze’s capabilities in delivering top-tier workspace solutions to enterprises, MSMEs, and startups.
With this new funding, Incuspaze aims to further strengthen its portfolio, which currently spans 3 million square feet across 44 locations in 18 cities. Notably, the company recently leased 220,000 square feet of space in Gurugram’s prestigious M3M Urbana project. This expansion aligns with the company’s broader strategy to increase its footprint, particularly in southern India, targeting key cities like Bengaluru, Chennai, and Hyderabad.
Founded eight years ago by Sanjay Choudhary, Incuspaze boasts an impressive client list, including major players like PhonePe, Byju’s, Flipkart, and Girnarsoft. The firm has demonstrated significant financial growth, reporting an over threefold increase in operating revenue to Rs 50 crore for the fiscal year ending in March 2023 (FY23), compared to Rs 14.84 crore in FY22. Additionally, Incuspaze managed to reduce its losses to Rs 98 lakh from Rs 5 crore during the same period. The company has yet to file its annual report for the last fiscal year (FY24).
According to a June 2024 report by property consultancy Colliers, the flexible office space segment in India’s top six cities registered its highest ever quarterly demand during April-June 2024. Bengaluru and Delhi-NCR alone accounted for 65% of this demand. This trend underscores the growing appetite for flexible workspace solutions, which Incuspaze is well-positioned to capitalize on.
In November of the previous year, Pantomath Financial Services Group closed its pre-IPO fund, the India Inflection Opportunity Fund (IIOF), at $60 million. Although Incuspaze has not officially commented on its IPO plans, the involvement of IIOF, which typically invests in IPO-bound companies, suggests a potential public listing in the future.
The co-working space industry in India is witnessing significant activity. Awfis became the first Indian startup in this sector to get listed on the stock exchange. More recently, another co-working startup, Smartworks, moved towards a potential public listing by converting itself into a public company, as reported exclusively by Entrackr in the first half of July.
With this substantial funding boost, Incuspaze is poised to accelerate its growth and solidify its position as a leading provider of flexible workspace solutions in India. The strategic investment from IIOF and other financial institutions not only enhances Incuspaze’s operational capabilities but also hints at a promising future, potentially including a public listing. As the demand for flexible office spaces continues to rise, Incuspaze is well-equipped to meet the needs of its diverse clientele and expand its market presence.
