Gurgaon based co-working space provider Innov8 said that it will start four new centres by the end of November of this year. The company said, two of the centres, will be operational by early November and that it has got pre-committed clientele like Vistaprint, Nokia, BenQ India. But Innov8 faces stiff competition from around 200 other firms in the co-working space category.
Innov8 currently serves 4,000 co-workers in Delhi, Mumbai, Chandigarh, and Bengaluru. The company said it has on-boarded more than 190 companies as its members such as RBL, Swiggy, Vice Media as its clients. Innov8 said it has 95% occupancy across all its centres.
Ritesh Malik, founder and CEO, Innov8 Coworking, told FE that two of the centres will be in New Delhi and the other two in Mumbai.
However, Innov8 competes in a market which is estimated to have more than 200 companies providing co-working spaces with other major companies like US-based WeWork, Indiqube, Co-Wrks, among others. But Malik says that the market is still far from being saturated. “Each company has their own target audience and their own segment they want to concentrate on and number of companies will help in promoting the culture of co-working,” he said. Malik predicts the co-working market to be bigger than the hotel industry.
Malik said the centres were built from an earlier investment the company had secured. Innov8 in early October raised a pre-Series A funding round of $4 million. Malik said the investments will be used to improve and develop new technologies such as sensors that can control light, workforce management systems, among others.
However, the company is still having mushrooming losses. A review of Innov8’s financials showed an increase in losses by over 15,000% from FY16-FY17. While it saw a growth in revenues, it is still far off from the revenues competitors like Awfis and Bhive rolled in the same period of time.