HerSpace Manufacturing raises $40M from Gray Matters Capital
HerSpace Manufacturing will use this funding primarily for expansion in manufacturing hubs across Karnataka, Tamil Nadu, and Andhra Pradesh
HerSpace Manufacturing, a Bengaluru-headquartered startup that builds employee accommodation for industrial workers, has raised $40 million from existing investor Gray Matters Capital.
Gray Matters Capital had previously invested $10 million in HerSpace Manufacturing in 2025. The latest investment will be deployed over 30 months through a mix of debt, quasi-equity and equity.
HerSpace Manufacturing said it will use the capital to expand its presence across the Greater Bengaluru region, Hosur, Chennai, and Andhra Pradesh, while also supporting other growth initiatives.
“HerSpace has moved quickly from an idea to a working business with strong market demand. Our goal now is to use the capital, experience and lessons from our first projects to build a model that can scale quickly while maintaining the quality and affordability that make HerSpace valuable to workers and employers,” said Bob Pattillo, Founder, HerSpace Manufacturing.
The company currently has over 950 modular beds delivered and operating, with more than 10,000 beds in the pipeline.
HerSpace said its accommodation solution is effective at improving employee retention, productivity, and satisfaction, in addition to drastically lowering the transport costs and the carbon footprint of employing companies.
“One company placed 200 women employees with us, who then excitedly told all their colleagues, who then asked to be relocated to HerSpace. The company decided to take the entire remaining capacity of 280 beds,” Pattillo said.
The startup noted that paying guest (PG) accommodations are currently the primary alternative, but often come with concerns around quality, safety, compliance and secure access for women. This highlights the need for leased worker housing such as that provided by HerSpace to support India’s manufacturing ambitions.
“This funding milestone marks a defining moment for HerSpace and reflects the immense market opportunity ahead,” said Simha Nagaraj, CEO of HerSpace Manufacturing.