Hyderabad-based workspace provider iSprout plans to raise nearly 40 million in equity within the next year to support its expansion. Currently, its valuation is not known, and it is in discussions with investors to raise pre-Series A fund.
At present, 30 per cent of the company’s funding comes from debt, while the remaining 70 per cent is family-funded.
This fundraising comes at a time when several office leasing players, including BHIVE, IndiCube, and WeWork India, are considering IPOs. The office sector recorded a gross absorption of 7.9 lakh sq. ft. in 2024, reflecting a 16 per cent year-on-year (YoY) growth. Bengaluru, Hyderabad, Mumbai, and Delhi-NCR collectively accounted for 73 per cent of the total space take-up, according to CBRE.
Footprint expansion
iSprout aims to expand its footprint in Bengaluru by adding 3-4 lakh sq. ft. to its existing 2 lakh sq. ft. Additionally, it recently launched its third center in the city in collaboration with Prestige Saleh Ahmed, adding 60,000 sq. ft. The company also plans to expand into tier-2 cities, including Vizag, Surat, Baroda, and Bhubaneswar, said Sundari Patibandla, CEO, Co-Founder, iSprout.
“Bangalore’s CBD is a thriving business ecosystem, and this launch represents a significant step in our mission to transform workspaces across India,” said Sreenivas Tirdhala, Co-Founder & Chief Strategy Officer, iSprout.
Founded in 2017, iSprout has a presence in Bengaluru, Hyderabad, Chennai, Vijayawada, Pune, Ahmedabad, Kolkata, and Delhi-NCR. The company began with a small space of approximately 12,500 sq. ft, and currently holds a portfolio of around 2.2 million sq ft pan-India.