The Indian co-working startup newbie Innov8 has finally reported profitability in FY18, after struggling with losses last year.
Until the last fiscal year, the co-working space provider based out of Delhi had been struggling with losses. In the latest financial year, however, Innov8 has improved upon its basic metrics, resulting in a total revenue inflow of Rs 8.2 Crores against net losses of Rs 7.02 Crores. As per their latest RoC filings with the MCA, Innov8 has reported a 4.2X jump in revenue (up from Rs 1.95 Crores in FY17). They have also managed to turn their losses around (their total increase in losses has gone down to 2.7X)
In FY17, Innov8 had reported a 15X jump in losses against a 5.3X increase in revenue. And even with their revenue growth lower than earlier, the company’s effective control of losses has been a crucial step towards improving their financial health.
Innov8’s expenses jumped up 3.4 times and went up to Rs 15.22 Crores (as against Rs 4.53 Crores in the last financial year). Their largest area of expense still remains rental and sharing, which cost the company Rs 3.61 Crores in FY18 – a 2.8X jump from Rs 1.27 Crores spent on the same in FY17.
However, by switching to direct rental at the increased costs, Innov8 was able to clock better rental revenue, amounting to Rs 8.02 Crores. Another 2 Lakhs was reported as revenue generated through ‘Services’ – a segment that the company seems to have launched in 2017-18.
Innov8 has been able to sustain its operations by picking up byte-sized investments throughout the year. The company had raised Rs 12 Crores by issuing preferred stock which was previously allocated to their parent holding company (Innov8 Inc) and their earliest backers (Y Combinator and angel investor Vijay Shekhar Sharma of PayTM).
After March 2018, the company has raised another 22 Crores. They had been planning a $15 million series A round since June 2017, but they closed at a pre-series A round of $4 million instead, in October this year. Their RoC filings, however report that they have raised INR 21.13 Crores via the pre-series A round.