Delhi based co-working space provider Innov8 up until last fiscal year had been struggling to improve its financial reports. In the latest fiscal, however, the company has managed to improve upon in basic metrics, creating a scope for a better future.
As per the RoC filings with MCA, the company has reported a 4.2X jump in revenue, up from Rs 1.95 crore in FY17 to Rs 8.2 crore in FY18. This, combined with a lower 2.7X increase in losses to Rs 7.02 crore from Rs 2.59 crore, is a turnaround compared to FY17’s financial reports.
In the previous fiscal the company had seen a larger 157X jump in losses as compared to a 5.3X increase in revenue. And even though the growth in revenue seems to be lower than earlier, the company has managed to control the growth in losses and bring the figure below the revenue it has earned, which is the first step towards improving financial health.
The expenses of the company took a 3.4X hike and went up to Rs 15.22 crore from Rs 4.53 crore in a span of one fiscal year ending March 2018.
The largest area of expense – Rental and Sharing – cost the company Rs 3.61 crore in the latest fiscal, a 2.8X increase as compared to Rs 1.27 crore in the previous financial year.
Via this direct rental and sharing expense, company earned a rental revenue of Rs 8.02 crore, up 4.5X from Rs 1.8 crore in FY17. Remaining turnover came from consultancy services provided (Rs 2 lakhs), a practice that seems to have started in FY 2017-18.
In the fiscal, the company sustained and was able to grow by picking up small amounts from investors throughout the year. Overall, the company raised around Rs 12 crore via issue of preference shares from Innov8 Inc, Y Combinator, and Vijay Shekhar Sharma among others.
Post March 2018 itself, the company has raised around Rs 22 crore from Innov8 Inc., and Premium Investments among others. Innov8 had been planning to raise a $15 million series A round since June 2017 itself but was finally able to raise a pre-series A round worth $4 million in October this year.
According to the RoC filings, however, the company has raised Rs 21.13 crore ($2.87 million) around October end this year, as a part of the pre-series A round.
Overall, Innov8 is slowly heading towards achieving its goals, and what remains to be seen is how the revenue growth unfolds in FY19 while keeping the basic metrics intact, controlling the losses, and raising the series A round it has been aspiring to, for a long while now.