US-based working space provider Industrious completed an $80m series D round featuring fitness facility operator Equinox, property developers TF Cornerstone and Granite Properties, and real estate investment trust Brookfield Properties Retail yesterday.
Financial services firm Wells Fargo’s Strategic Capital unit also took part in the round, as did private equity firm Riverwood Capital Partners and Canada Pension Plan Investment Board.
Industrious operates a chain of co-working spaces that span 80 branches across 45 US cities. It is expanding through partnerships with landlords, meaning it is asset-light, while the landlords themselves can reportedly claim rental income 30% higher than a market lease.
Jamie Hodari, co-founder and chief executive of Industrious, said: Industrious is unquestionably the operating partner-of-choice for landlords, and from our end, partnering with landlords enables us to deliver the world’s most productive workplaces.
“We evolved to a partnership-only approach about a year and a half ago and this latest round of funding capitalises on that, allowing us to aggressively pursue our expansion goals sustainably, efficiently and with little risk.”
The company plans to put the series D funding toward doubling the number of locations it runs, with international expansion on the horizon. It also intends to increase the landlord services it offers.
Equinox contributed to the round following a deal in May this year that will involve Industrious co-locating workspaces at its gyms. The funding boosted the total raised by Industrious to $222m since it was founded in 2013, the company said.
Fifth Wall and Riverwood co-led an $80m series C round for Industrious in February 2018 that included Wells Fargo Strategic Capital, media company Alrai, real estate investment firms Outlook Development Group and Rabina Properties, and Schechter Private Capital.
Riverwood and Outlook Development had contributed to the company’s series C round, which closed at $62m in early 2017, and which included Maple Woodward Capital.
Photo courtesy of Industrious.
