InstaOffice, a chain of business centres and co-working spaces in India, has raised pre-Series A round of investment led by Globevestor, which has previously invested in startups like Zoomcar, which recently secured funding from Chinese VC investor Cyber Carrier.
Several leading angel investors also participated in the round, including Zishaan Hayath, Co-founder of Toppr; Karan Chellani, Managing Partner at SQUE Capital; and Mohit Satyan, Director DFM Foods and Chairman Teamwork Arts, along with a cluster of other industry experts and angel investors.
The deal size remains undisclosed.
InstaOffice has grown from a single business centre in Gurgaon in February 2016 to more than 50,000 sqft area under management, spread across 10 centres across Gurgaon, Delhi and Bengaluru.
“The commercial real-estate has been plagued by multiple friction points and two of them have been leases with long term lock-in periods and availability of only large floor plates. However, users today need spaces, which are highly flexible in time, area or layout of the space. Consequently, most landlords suffer from high vacancy periods and poor rental yields, not to mention the legal hassles when clients do not complete their lock-in periods,” said Devendra Agarwal, Co- founder at InstaOffice.
“We at InstaOffice are disrupting the commercial real-estate industry by structuring partnerships with landlords where they can earn higher rental yields from their spaces and customers can get high degree of flexibility,” he added.
With four operational centres in Gurgaon, two in Bengaluru and four more in Delhi-NCR becoming operational over next two months, InstaOffice has a community of 400 members, growing to over 1,000 active members by next quarter.
“Co-working is a fairly nuanced industry. 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 great pace. Hence our members come from across the boar, ranging form early-stage entrepreneurs, mature startups, SMEs to large corporations and MNCs like Dr. Reddy’s, Staples, Yahoo, Amazon amongst others,” added Vikas Lakhani, Co-founder, InstaOffice.