HerSpace Manufacturing, a Bengaluru-based startup that provides housing for industrial workers, has raised $40 million from existing investor Gray Matters Capital as it looks to expand its operations.
The latest funding takes Gray Matters Capital’s total commitment to the company to $50 million, per media reports. The impact investor first invested $10 million in the company in 2025.
The capital will be a mix of debt, quasi-equity, and equity and will be deployed over the next 30 months. HerSpace plans to use the funds to expand its housing network in manufacturing hubs across Karnataka, Tamil Nadu and Andhra Pradesh, while also investing in people and systems.
Established in 2023, HerSpace builds housing units for industrial workers and sets them up near manufacturing sites. It also manages services such as security, housekeeping, food, and other basic support. Its accommodation includes dormitories for large groups of workers, residences for women, and housing for families and supervisors.
As India’s manufacturing sector expands, demand is growing for affordable, well-managed housing close to industrial hubs.
In 2024, a study by the government think tank NITI Aayog cited how a lack of housing close to industrial areas can make it harder for companies to retain workers and can affect productivity.
It also noted that limited access to suitable accommodation may discourage women from moving to these areas for manufacturing jobs.
