InstaOffice, a co-working space provider based in Gurgaon has raised an undisclosed sum in its pre-Series A round led by Globevestor, a U.S and Europe-based investor platform. The said funding is the very first external fund for the company vying against established players like Awfis, 91springboard, etc.
Other angel investors for this round include Toppr co-founders Zishaan Hayath, Karan Chellani; managing partner at SQUE Capital, and Mohit Satyanand, chairman of Teamwork Arts. Moreover, Vertices Partners acted as legal advisors for this fund raise.
Ankur Srivastava, Co-founder Globevestor commented on investment as,
“India is going through a shift in workplace preferences by companies of all sizes. Given the astute business acumen of the core team at InstaOffice, we are excited to back these entrepreneurs and their journey to take Indian co-working industry by storm.”
The startup was initiated by a duo from Jaipur — Vikas Lakhani and Devendra Agrawal with an initial investment of 40 lakhs. Founded back in October 2015, the company brought in its first office in February last year. Till now, the company has employed six properties — four in Gurgaon and two in Bengaluru alongside its plans for five more properties to be operated in the NCR. These offices are centrally located and highly convenient commercial locations, including Golf Course Road, Sohna Road, and Sector 32 in Gurgaon and Indira Nagar in Bengaluru.
These properties are 4,000-6,000 sq. ft. in size and with a seating capacity of 60-100 people each. Revenues are generated by offering office spaces on a per-desk per-month basis for a pre-defined period of use charging from Rs. 7,000-12,000 per seat per month. Moreover, the co-working platform also delivers customizable plans, boardrooms or private cabins on request.
The current investment for the start-up will be channelized towards expansion across India — by leasing out bigger office spaces. Further, the company will also amplify its team in order to conduct and deliver customer-centric events. The company works on a revenue-share model wherein the revenue is shared with the owner of the property. This model will also be enhanced through the funding received.
Speaking on the fundraising round, co-founder Vikas Lakhani commented,
Landlords are not able lease out the properties on traditional models. They partner with us because we are able to give them superior yields.
As for Globevestor, the platform has previously funded startups from various industries, including self-drive car rental platform ZoomCar, OnlineTyari for online test-prep, Springboard, Eatlo, GenY Medium, etc. The company believes that with the growing network of serviced work-spaces, InstaOffice envisions great potential. It is yet to unveil how much the investors have actually invested.
