iSprout – Coworking Spaces Raises $4M in Pre-Series A Round
2 years ago Rituka MiSprout Coworking Spaces has raised $4 million in a Pre-Series A round and intends to raise its Series A round of $10 million soon.
The Coworking Enterprise in India is growing exponentially and is set to pass 50 million square ft by 2023. With Covid disrupting the standard practices, companies are opting for a hybrid model of work, coworking spaces are regaining prevalence. A trend that saw a rise in 2018, companies have since begun including these spaces in their real estate strategies.
In the post-pandemic situation, most organizations are opting for affordable and flexible solutions. Coworking Spaces effectively aim to solve this crisis as it is cost-effective. A Coworking Space is an arrangement where various companies share office space and infrastructure, allowing maximum cost savings and convenience. This model works great for startups and SMBs as they don’t have to worry about having to set up a separate office where their limited employees can effectively work from.
According to the Coworkingers report, the impact of the pandemic on the coworking enterprise was most in Hyderabad (down 78% Q2 YoY) and Mumbai (down 63% Q2 YoY), whereas Bangalore was most resistant. Mumbai was the slowest to recover with a 60% drop in demand. However, Bangalore and Hyderabad recovered at a quicker pace with lead flows up by 26% and 9% in 2019, respectively.
Coworking Space, iSprout Makes a Come Back
The iSprout Business Center began in 2016 to provide inspiring workspaces to suffice the needs of growing enterprises. iSprout is the brainchild of Sneha Boyalla, Sreeni Tirdhala, CA Sesshaa Prasad, Vijay Oddiraju, and Sundari Patibandla. iSprout offers dedicated spaces to freelancers or established corporates alike. With vibrant interiors and creative corners, iSprout offers a range of services including free wifi, custom build spaces, front desk services, 24/7 security, cafeteria, server rooms, and an absolutely peaceful ambiance. Offering 3 plans: 1-10 employees, 10-100 employees, and 100+ employees, iSprout is available in Hyderabad, Pune, Vijaywada, and Chennai.
This Hyderabad-based office space solution provider, on 23rd March 2022 announced their latest funding round. Raising a total of $4 Million in a Pre-Series A round from private investors, iSprout aims to expand nationwide. With a substantial part of funds invested by a leading infrastructure company’s director (not been disclosed yet), 75% of ownership is held by the aforementioned investor and the four co-founders. These funds will go towards solidifying their presence in the existing states.
iSprout also intends to soon raise its Series A round of $10 Million attempting to capitalize on the coworking spaces market. In addition, the projected funds will go towards growth and expansion, with a larger focus on automating critical processes through building patentable technology. Moreover, these funds will also be going to expand aggressively in existing markets and expand to NCR, Mumbai, and Kolkata. Aiming to surpass 1 million square ft. by the end of this year, iSprout aims to dominate the commercial real-estate sector.
Thoughts on the Fund Raise
Sundari Patibandla, CEO & Co-Founder at iSprout says, “Managed office spaces have seen significant growth and will dominate the commercial real estate sector in the post-pandemic future. We at iSprout have been continuously working towards offering the best possible office space solution for every individual & business. We are emphasizing meeting the ever-evolving modern-day office requirements and the funding in the latest round gave a boost to our plansâ€ÂÂ
Sreeni Tirdhala, CMO and co-founder of iSprout, says; “We as a co-working and managed office space brand have come a long way since our inception. We expect to expand aggressively in the Indian market. The forthcoming Series A fund will give us the thrust to expand our footprint across India. Today, managed office space solutions are a requirement and the demand is only going to increase in the near future.â€ÂÂ
