iSprout Secures INR 40 Crore Investment from Vivriti Asset Management to Fuel Expansion in India
- ByStartupStory | October 11, 2023
iSprout, a prominent name in the Indian co-working space industry, has announced a substantial investment of INR 40 crore through the issuance of its maiden secured bond. The bond was successfully subscribed by Vivriti Asset Management (VAM), a distinguished performer in credit asset management with investments exceeding INR 3,000 crore in mid-market enterprises.
Established in 2016 by visionary founders Sundari Patibandla, Sreeni Tirdhala, CA Sesshaa Prasad, and Vijay Oddiraju, iSprout was created to address a conspicuous gap in the market and meet the surging demand for managed office spaces, catering to both startups and established businesses.
Sundari Patibandla, the CEO & Co-Founder of iSprout, expressed her thoughts on this significant investment. She remarked, “iSprout’s foundational strength lies in delivering premium managed office solutions coupled with five-star rated services. The confidence placed in our vision by Vivriti Asset Management is instrumental in realizing our aspirations for measured but substantial expansion across India.”
The freshly acquired funds are earmarked for the augmentation and expansion of the company’s assets, with a substantial portion allocated to the strategic growth of iSprout within its existing markets, specifically Hyderabad and Bengaluru. Moreover, a proportion of the raised capital will be allocated to the development of proprietary technologies designed to automate critical operational processes.
Sreeni Tirdhala, CMO & Co-Founder at iSprout, reflected on the company’s growth trajectory. “Our inspirational workspaces blend rich Indian culture with Western corporate functionality. With the managed office space sector witnessing significant growth over the last 4 to 6 quarters, iSprout finds itself uniquely positioned for exponential expansion in the coming years. With a remarkable 200% growth in the last 6 quarters and this fresh infusion of funds, we are poised to claim a substantial share in the premium managed space market’s growth.”
Speaking on this strategic investment, Mohamed Irfan, Fund Manager at VAM, emphasized, “Managed office spaces have experienced a considerable tailwind, particularly in the post-pandemic era, as the needs of both corporate entities and employees have evolved. The ability to provide an exceptional experience for these stakeholders while prudently managing profit and loss will determine which players can scale effectively. iSprout, with its strong value proposition and solid performance metrics, aligns perfectly with our fund’s investment thesis. We are pleased to invest in their growth journey.”
In a recent development, iSprout has introduced two new office spaces, totaling 2 lakh square feet in Divyashree Trinity and My Home Twitza, Hyderabad. With both projects achieving full occupancy, iSprout has its sights set on delivering its thirteenth center, spanning over 1.5 lakh square feet, at the strategically positioned Aurobindo Orbit by November 2023.
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iSprout is ambitiously eyeing the surpassing of 1 million square feet and achieving a turnover exceeding INR 120 crores by the conclusion of the 2023-2024 financial year. The company is primed for exponential growth in the next 1 to 2 years, with expansion plans encompassing existing markets such as Hyderabad, Bangalore, Chennai, Pune, as well as an entry into new markets like Delhi NCR and Kolkata.
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