Flexible office operator Industrious has closed on a $80 million Series D funding round through its landlord partnerships.
The company’s model involves managing the workspaces, while providing landlords an income of 30% above a market lease. Now, Industrious expects to be profitable in Q1 2020 and has given landlords more confidence in the company as a tenant.
“We evolved to a partnership-only approach about a year and a half ago and this latest round of funding capitalizes on that, allowing us to aggressively pursue our expansion goals sustainably, efficiently, and with little risk,” said Jamie Hodari, CEO and co-founder of Industrious. “Evolving to management contracts has not been easy.”
Management contracts have accounted for over 80% of Industrious’ deals in 2019, and the company expects them to take up the majority of its portfolio by Q1 2020.
Investors in the round included Riverwood Capital Partners, Equinox, Wells Fargo Strategic Capital and others.