Workspace solutions provider IndiQube has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹850 crore through an initial public offering (IPO). The offering will consist of a fresh equity issue worth ₹750 crore and an offer-for-sale (OFS) of ₹100 crore by existing investors.

The Bengaluru-based company plans to use the proceeds from the IPO to fund capital expenditure for establishing new centres, repaying existing debt, and providing general corporate purposes. The move comes as the flexible workspace market grows, driven by the rising demand for hybrid work models and cost-effective office solutions.

A Growing Presence in the Flexible Workspace Market

Founded in 2015, IndiQube has rapidly scaled its operations to manage 103 centres across 13 cities, covering 7.76 million square feet of super built-up area with a total seating capacity of 172,451 as of June 2024. Its portfolio includes a mix of Global Capability Centres (GCCs), Indian corporates, unicorn startups, and emerging enterprises. Prominent clients include Myntra, upGrad, Zerodha, Redbus, and Siemens, showcasing its appeal to diverse sectors.

IndiQube’s core offering, IndiQube Grow, provides plug-and-play workspaces with integrated interiors, technology, facility management, and value-added services. The company has also launched specialised verticals like IndiQube Bespoke, IndiQube One, MiQube, and IndiQube Cornerstone to cater to niche client needs.

Financial Growth and Market Context

IndiQube reported a total income of ₹868 crore for FY24, marking significant growth from ₹601 crore in the previous fiscal. This performance aligns with the broader surge in demand for flexible workspaces as businesses adopt hybrid work models and seek scalable, cost-efficient solutions.

A recent CBRE report highlighted that India’s flexible workspace stock has surpassed 79 million square feet, with Tier 1 cities accounting for 72 million square feet. This figure is projected to grow to 124 million square feet by 2027, reflecting the sector’s robust expansion potential.

IPO Backed by Prominent Players

IndiQube is backed by WestBridge Capital, a leading venture capital firm, and ICICI Securities and JM Financial are managing its IPO as the book-running lead managers. The company’s decision to go public underscores its confidence in scaling operations amid a growing demand for flexible office solutions.

Meeting the Needs of a Hybrid Workforce

The rise of hybrid work models and a shift in workplace culture have made flexible workspaces an integral part of the commercial real estate market. IndiQube’s diverse offerings position it as a strong contender to meet the needs of businesses seeking customisable, tech-enabled spaces that enhance productivity and reduce costs.

As IndiQube prepares for its IPO, the company aims to solidify further its position in India’s growing flexible workspace industry, offering solutions tailored to the evolving demands of the modern workforce.