OYO-backed coworking startup Innov8 has reported a massive drop in profitability for the financial year 2024–25. The company’s profit fell by 97% to just ₹1.2 crore, compared to ₹41.3 crore in FY24.
Despite steady revenue, rising operational costs and increased competition in the coworking industry seem to have squeezed margins.
Financial Performance at a Glance
| Particulars | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | ₹188 crore | ₹192 crore | ▼ 2% |
| Net Profit | ₹1.2 crore | ₹41.3 crore | ▼ 97% |
| Profit Margin | 0.6% | 21.5% | Sharp decline |
| Backed By | OYO | OYO | – |
What Went Wrong?
- Higher expenses in leasing and maintaining coworking spaces.
- Fierce competition from players like Awfis, WeWork India, and Smartworks.
- Slowdown in startups’ office spending, impacting demand.
Industry Context
India’s coworking market continues to grow, driven by rising demand from freelancers, startups, and corporations. However, profitability remains a challenge for many players due to high real estate costs and aggressive expansion strategies.
Expert Take
Analysts suggest Innov8 may focus on consolidation and cost optimisation in FY26 to regain profitability. With OYO’s backing, the company still has strong financial support, but sustaining growth in a competitive market will require tighter execution.
