Summary:

  • Founded 8 years ago and spearheaded by Sanjay Choudhary, Incuspaze is now looking to extend its presence in southern India

  • This round was led by the India Inflection Opportunity Fund (IIOF).

  • Incuspaze boasts an impressive portfolio, encompassing 3 million square feet spread across 18 cities and 44 locations.

Incuspaze, a prominent provider of workspace solutions, has successfully raised approximately $8 million in its first funding round. This significant investment was led by the India Inflection Opportunity Fund (IIOF) and supported by various financial institutions. The infusion of funds is set to enhance Incuspaze’s ability to deliver premium workspace solutions to a diverse clientele, including enterprises, MSMEs, and startups, as stated by the company.

Incuspaze boasts an impressive portfolio, encompassing 3 million square feet spread across 18 cities and 44 locations. A notable recent addition to their holdings is a 220,000-square-foot space leased in Gurugram’s M3M Urbana project. This expansion highlights the company’s growing footprint in key commercial hubs.

Founded eight years ago and spearheaded by Sanjay Choudhary, Incuspaze is now looking to extend its presence in southern India, with particular interest in Bengaluru, Chennai, and Hyderabad. The company’s client roster features notable names such as PhonePe, Byju’s, Flipkart, and Girnarsoft, indicating a strong market presence and credibility in the industry.

Financially, Incuspaze has shown remarkable growth. For the fiscal year ending in March 2023 (FY23), the company’s operating revenue surged over threefold to Rs 50 crore, compared to Rs 14.84 crore in the previous fiscal year (FY22). Moreover, the company managed to significantly reduce its losses to Rs 98 lakh in FY23 from Rs 5 crore in FY22, showcasing effective financial management and a clear path towards profitability. However, Incuspaze has yet to file its annual report for the latest fiscal year (FY24).

The timing of this funding round coincides with a burgeoning demand for flexible office spaces in India. According to a June 2024 report by property consultancy Colliers, the flexible office space segment in the top six Indian cities experienced its highest ever quarterly demand during the April-June period. Bengaluru and Delhi-NCR were particularly noteworthy, accounting for 65% of the total demand. This trend underscores the growing acceptance and reliance on flexible workspaces in the country’s major urban centers.

In the broader context of the co-working space industry, Incuspaze’s funding round aligns with a trend of significant developments. For instance, Pantomath Financial Services Group successfully closed its pre-IPO fund, the India Inflection Opportunity Fund (IIOF), at $60 million in November of the previous year. While Incuspaze has not publicly discussed any immediate plans for an initial public offering (IPO), the investment from IIOF suggests a potential future public listing. The IIOF typically invests in companies that are gearing up for an IPO, hinting at strategic long-term plans for Incuspaze.

The co-working sector has seen other major players making moves towards public listings. Awfis, for example, became the first Indian co-working startup to be listed on the stock exchange. Recently, another competitor, Smartworks, converted itself into a public company, signaling its own aspirations for a public listing.

In conclusion, Incuspaze’s successful funding round not only strengthens its operational capabilities but also positions it strategically within a rapidly growing market. With plans to expand in southern India and a solid financial performance, the company is well-placed to capitalize on the increasing demand for flexible office spaces. The backing from IIOF further enhances its prospects, possibly paving the way for a future public listing and sustained growth in the competitive workspace solutions industry.