The coworking startup will deploy fresh funds to open new centres, strengthen enterprise infrastructure, and invest in tech and facility management as it eyes 3 Mn sq. ft. portfolio and IPO.
iSprout Secures ₹60 Cr from Tata Capital to Fuel Expansion
Hyderabad-based coworking startup iSprout has raised ₹60 Cr (~$6.6 Mn) in debt funding from Tata Capital, marking a significant step in its journey to scale up in India’s booming flexible workspace market.
- The funds will be used to:
- Launch new centres across metros
- Upgrade enterprise-grade infrastructure
- Expand its managed office portfolio
- Invest in tech, workspace customisation, and facility management capabilities
“This investment strengthens iSprout’s position to further expand into high-growth business hubs… and scale with asset-strategic discipline,” said Sundari Patibandla, Cofounder & CEO.
iSprout’s Rapid Growth and Service Differentiation
Founded in 2016 by Sreenivas Tirdhala and Sundari Patibandla, iSprout offers:
- Managed office spaces tailored to enterprises
- Coworking solutions across major Indian cities
- Business support services including company setup and payroll management
- Current footprint:
- 25 centres across 9 cities
- 2.5 Mn sq. ft. of operational and under-development workspace
- Growth trajectory:
- 10X revenue growth over the last 5 years
Strategic Funding History & Expansion Plans
The latest Tata Capital funding follows:
- $4 Mn pre-Series A round in 2022 from private investors, aimed at expanding into Delhi NCR and Mumbai
- $4.8 Mn from Vivriti Asset Management in October 2023
These rounds helped iSprout move beyond Tier I cities and strengthen its enterprise-centric product offerings, differentiating itself in a highly competitive market.
With the new capital, iSprout is now targeting:
- A 3 Mn sq. ft. portfolio
- Expansion into more Tier I and Tier II tech hubs
- A potential IPO in the medium term
Competitive Landscape in Coworking and Managed Offices
iSprout operates in a crowded but fast-growing market, competing with:
- Listed players:
- WeWork India
- DevX
- Smartworks
- IndiQube
- Awfis
- Unlisted peers:
- Innov8
- Stylework
Many of these competitors went public in 2025, reflecting the sector’s maturing business models and investor confidence.
Indian Coworking Market Set for Massive Growth
According to Research and Markets:
- The Indian coworking market was valued at $14.91 Bn in 2023
- It is projected to reach $40.47 Bn by 2030, driven by:
- Hybrid work models
- Startup and enterprise adoption
- Demand for flexible lease terms and customisation
This creates a fertile ground for players like iSprout, especially those offering end-to-end managed solutions to enterprise clients looking to scale operations efficiently.
