Workforce housing provider HerSpace Manufacturing secures $40 million in funding

Bengaluru-based workforce accommodation startup HerSpace Manufacturing has secured a fresh $40 million capital commitment from existing investor Gray Matters Capital (GMC).

The commitment takes GMC’s total backing of the company to $50 million, including $10 million invested in 2025.

HerSpace said the latest funding will be deployed over the next 30 months through a mix of debt, quasi-equity and equity.

The startup plans to use the funding to expand its workforce housing operations in Greater Bengaluru, Hosur, Chennai and Andhra Pradesh, as well as invest in staff and systems to support its growth.

HerSpace designs, manufactures and operates modular accommodation for workers employed in industrial hubs. Its housing includes worker dormitories and access-controlled accommodation for women, while the startup also manages services including security, cleaning, food and welfare support.

According to the startup, it currently has more than 950 modular beds in operation, with more than 10,000 beds in its development pipeline.

“HerSpace has moved quickly from an idea to a working business with strong market demand. Our goal now is to use the capital, experience and lessons from our first projects to build a model that can scale quickly while maintaining the quality and affordability that make HerSpace valuable to workers and employers,” Bob Pattillo, founder of HerSpace Manufacturing, said.

HerSpace said its accommodation model, which places workers closer to factories and incorporates labour, safety and welfare compliance, can reduce transport requirements and support employee retention and attendance.

The funding comes as policymakers focus on the availability of accommodation near factories as part of efforts to expand India’s manufacturing sector.

A NITI Aayog report published in December 2024 said a shortage of worker accommodation near industrial areas could contribute to higher staff turnover, lower productivity and workforce instability. It also identified inadequate housing as a potential barrier to women moving to industrial centres for employment.

“This funding milestone marks a defining moment for HerSpace and reflects the immense market opportunity ahead,” Simha Nagaraj, CEO of HerSpace Manufacturing, said.