iSprout, one of India’s leading Co-Working space brands announced today that it has secured an investment of INR 40Crs through the issuance of its first secured bond. It was subscribed by Vivriti Asset Management (VAM), a leading performing credit asset manager with investments of >INR 3000 crore in mid-market enterprises.
iSprout was founded in 2016 by Sundari Patibandla, Sreeni Tirdhala, CA Sesshaa Prasad, and Vijay Oddiraju to fill the very noticeable gap and the demand for managed office spaces for startups and established businesses.
Sharing her views on the same, Ms. Sundari Patibandla, CEO & Co-Founder commented, “iSprout’s core strength lies in proving premium managed office solutions with five-star rated services. The faith shown by Vivriti Asset Management in our vision to create a better and more inviting work environment has resulted in helping us fund our dreams of slow but steady expansion across India.”
The funds will be utilized to grow and extend their company assets, with a significant percentage of the funds going towards increasing the presence of iSpout in the existing markets of Hyderabad and Bengaluru. Funds raised will also be used to develop proprietary technologies to automate crucial procedures.
“Our inspiring workspaces are designed with the blend of rich Indian culture and western corporate functionality. With the Managed Office space sector growing rapidly in the last 4 -6 quarters, iSprout is in a unique position to grow exponentially in the coming years.” iSprout grew by 200% in the last 6 quarters and with this additional infusion of funds we can grab a very sizable share in the premium managed space market growth,” said, Mr. Sreeni Tirdhala, CMO & Co-Founder at iSprout
Commenting on the deal, Mr. Mohamed Irfan, Fund Manager at VAM said, “Managed office spaces have had a very good tailwind especially post-pandemic, where the needs of both corporates and employees have evolved. The ability to deliver a top-not notch experience for these stakeholders while prudently managing P&L will define which players can scale. iSprout is a profitable specialist in the space with a good value proposition, and its performance metrics aligns well with the investment thesis of our fund. We are pleased to invest in them to catalyze their growth.”
Recently, iSprout has delivered new office spaces of 2 lakh SFT in Divyashree Trinity and My Home Twitza, Hyderabad. With both projects reached 100% occupancy, iSprout is looking to deliver its thirteenth centre comprising over 1.5lakh SFT in the strategically located Aurobindo Orbit by Nov 2023.
iSprout is looking to surpass 1 million SFT and achieve more than 120 Cr turnover by the end of financial year 2023-2024 and poised for an exponential growth in the next 1-2 years with property expansion planned in the existing markets of Hyderabad, Bangalore, Chennai, Pune as well as entry into new markets such as Delhi NCR and Kolkata.
