The Bengaluru-based startup HerSpace Manufacturing, which builds housing for industrial workers, has secured $40 million from its existing investor, Gray Matters Capital.
Previously, Gray Matters Capital invested $10 million in HerSpace Manufacturing in 2025. The new funding will be distributed over 30 months through a combination of debt, quasi-equity, and equity.
The company stated that it plans to use the capital to expand its presence in the Greater Bengaluru region, as well as in Hosur, Chennai, and Andhra Pradesh, while simultaneously supporting other growth areas.
Bob Pattillo, founder of HerSpace Manufacturing, noted: 'HerSpace has quickly evolved from an idea into a working business with high market demand. Our goal now is to leverage the capital, experience, and lessons from initial projects to create a model that can scale rapidly while maintaining the quality and affordability that make HerSpace valuable to both workers and employers.'
Currently, the company has deployed and operates over 950 modular beds, with more than 10,000 beds under development.
HerSpace asserts that its housing solution effectively improves employee retention, productivity, and satisfaction, while significantly reducing transportation costs and the carbon footprint of employing companies.
Pattillo gives an example: 'One company placed 200 female employees with us, who then enthusiastically told all their colleagues, who in turn requested a transfer to HerSpace. The company decided to take all the remaining capacity of 280 beds.'
The startup emphasized that the primary alternative currently is Paying Guest accommodations (PGs), but these often raise concerns regarding quality, safety, compliance, and secure access for women. This highlights the need for worker housing like that offered by HerSpace to support India's manufacturing ambitions.
Simha Nagaraj, CEO of HerSpace Manufacturing, concluded: 'This funding stage marks a defining moment for HerSpace and reflects the enormous market opportunities ahead.'
