Bengaluru-based workforce accommodation startup HerSpace Manufacturing has secured a fresh capital commitment of $40 million from existing investor Gray Matters Capital (GMC).
The latest commitment takes the total capital committed by GMC to $50 million, including the $10 million invested in 2025. The capital will be deployed over the next 30 months through a mix of debt, quasi-equity and equity.
HerSpace will use the funds to expand its affordable employee housing offerings across key manufacturing hubs, including Greater Bengaluru, Hosur, Chennai and Andhra Pradesh. The company will also invest in people and systems to support its growth.
Founded in 2023 by Bob Pattillo and Puneeth Thimmegowda, HerSpace provides leased accommodation for industrial workers. The startup funds, designs, builds and operates workforce housing facilities, with statutory compliance incorporated into its operations.
The company currently has more than 950 modular beds delivered and operational, while over 10,000 beds are in the pipeline.
“This funding milestone marks a defining moment for HerSpace and reflects the immense market opportunity ahead, as well as the dedication of our talented team including our founders Mr. Bob Pattillo and Mr. Puneeth Thimmegowda,” said Simha Nagaraj, CEO of HerSpace Manufacturing.
HerSpace’s expansion comes amid growing focus on worker accommodation as a factor supporting India’s manufacturing sector. A 2024 NITI Aayog report highlighted inadequate housing near industrial hubs as a constraint for worker migration, retention and productivity, particularly for women workers.
HerSpace said its accommodation model can also help employers reduce employee transport costs and their carbon footprint.