[Funding alert] GoWork raises $53M debt led by BlackRock with co-investment by CLSA Capital Partners
Gurugram-based co-working space GoWork has raised $53 million debt capital, led by BlackRock's private credit team. The round also saw co-investment from CLSA Capital Partners' Special Situations Group. This is the first Indian onshore private investment by New York-based investment management firm BlackRock after five years.
The funds will be used to further scale business operations and provide other value-added services to GoWork's clients. Currently, GoWork has two offices in Gurugram with a total capacity of 12,000 seats. Some of the startups that use GoWork spaces includes Coverfox, Impactify Consulting, and Paytm Mall. The team plans to touch over 50 centres across major cities of India by 2025.
Speaking of the investment, Sudeep Singh, CEO and Chief Evangelist, GoWork, said:
"GoWork can further propel our growth across the length and breadth of all emerging markets in India. At GoWork, we aim to create a support system that caters to not just the physical/infrastructural requirements of companies but one that encompasses all aspects of the business. This funding is one step forward towards achieving that goal.”
The co-working space is heating up
OYO Hotels and Homes recently acquired Delhi-NCR-based Innov8 for Rs 220 crore, and made its entry into the co-working space. Entering this domain marks the Gurugram-based unicorn’s foray into yet another segment of property management and rental space. In total, Oyo Workspaces is looking to immediately open over 21 centres with over 15,000 seats across 10 cities. The team already claims to have clients like Swiggy, Paytm, Nykaa, OLX, Pepsi, and Lenskart, among others.
Apart from Oyo, there are larger players like WeWork, Cowrks, and Awfis. According to a JLL report, in the coming years, co-working spaces will take over conventional office spaces owing to the growing demand. On their part, entrepreneurs - a large number of them millennials – seek convenience, ease of setting up office, and several amenities, all of which co-working business centres provide.
Speaking of the funding, Neeraj Seth, BlackRock’s Head of Asian Credit, said:
“We feel excited about the opportunities GoWork presents as it continues to reinvent and revolutionise the co-working culture in India. GoWork is taking the brick-and-mortar aspect of the co-working concept further, as well as consistent measures to enable young businesses to reach their highest potential. We look forward to GoWork offering optimal operational efficiency for all startups as well as corporates.”
Some industry experts say that India is at the cusp of a co-working revolution with domestic and global players like WeWork and CoWrks aggressively pushing the market. Last year, co-working space provider Awfis garnered a whopping $20 million in a single fund raise led by Sequoia Capital.
Vaibhav Totla, Managing Director of the Special Situations Group at CLSA Capital Partners, said in a press release: “CLSA Capital Partners sees great potential in the co-working and managed office space in India and we believe GoWork is an innovative leader in this fast-growing sector. CLSA Capital Partners’ Special Situations Group is excited about this new investment partnership and remains focused on sourcing additional corporate credit opportunities in India and other parts of Asia.”
(Edited by Teja Lele Desai)