Co-working space chain InstaOffice raises pre-Series A funding from Globevestor and other angel investors
Bengaluru-based chain of business centres and co-working spaces InstaOffice has raised pre-series A investment in a round led by Globevestor. Angel investors like Zishaan Hayath (Co-founder of Toppr), Karan Chellani (Managing Partner at SQUE Capital), and Mohit Satyan (Director of DFM Foods and Chairman of Teamwork Arts) also participated in the round.
InstaOffice will utilise this fund in building a strong team, develop an ecosystem by partnering with Oyo Room, ClearTax, Dexter Capital, Vertices Partners and Amazon Web Services and increase the numbers of co-working spaces.
Globevestor has previously invested in startups like Zoomcar, OnlineTyari and Rubique. “India is going through a shift in workplace preferences for companies of all sizes,” said Ankur Srivastava, Co-founder of Globevestor.
Since February 2016, InstaOffice has grown from a single business centre in Gurgaon to having more than 50,000 sqft of area under management, spread across 10 centres in Gurgaon, Delhi and Bengaluru. According to the company, InstaOffice’s partnership with landlords helps them stay light on both Capex and Opex needs.
The commercial real estate space has been plagued by multiple friction points, two of which have been leases with long-term lock-in periods and the availability of only large floor plates. Users demand spaces that are flexible in time, area and layout. Most landlords also faced challenges owing to long vacancy periods, low rent and legal hassles like incompletion of lock-in periods by users.
“We at InstaOffice are disrupting the commercial real estate industry by structuring partnerships with landlords, whereby they can earn higher rental yields from their spaces and customers can get a high degree of flexibility,” said Devendra Agarwal, Co-Founder, InstaOffice.
With four operational centres in Gurgaon and two in Bengaluru, and four more becoming operational in Delhi-NCR over the next two months, InstaOffice aims to grow its member base to 1,000 by the next quarter, from its current community of 400 active members. The centres are located in commercial locations, including Golf Course Road, Sohna Road and Sector 32 in Gurgaon and Indiranagar in Bengaluru.
InstaOffice has developed an end-to-end office space solution, InstaOffice Unwind Sessions and a wide range of support services for its members.
“Our members have very diverse needs, depending on numerous factors. The key is to build the right product with the right value at the right location, which InstaOffice continues to do at a great pace. Hence, our members come from across the board, ranging from early-stage entrepreneurs, mature startups and SMEs to large corporations and MNCs like Dr. Reddy’s, Staples, Yahoo and Amazon, amongst others,” added Vikas Lakhani, Co-Founder, InstaOffice.
With the evolving macroeconomic and technological dynamics, startups along with large corporations are increasingly adopting coworking spaces as an integral part of their wider workplace planning and strategy.