IndiQube’s Ambitious Plan to Expand Flexible Workspaces

As a leading player in managed workplace solutions, IndiQube Spaces Limited is set to reshuffle the commercial real estate landscape across India. With an eye on growth, the company is poised to add an impressive 3 million sq.ft. of flexible workspace stock over the next three years, funded through its upcoming Initial Public Offering (IPO). This strategic initiative marks a significant move towards enhancing IndiQube’s position in the thriving flexible workspace market.

Funding Expansion Through IPO

The upcoming IPO is expected to raise Rs 700 crore, comprising a fresh issue of Rs 650 crore and an offer for sale (OFS) of Rs 50 crore by promoters Rishi Das and Meghna Agarwal. Notably, Rs 462.6 crore from the fresh issue will specifically target capital expenditures dedicated to developing new centers. As a result, IndiQube’s total Area Under Management (AUM) is projected to reach 11.47 million sq.ft. by FY28, a significant increase from its current portfolio size.

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Bengaluru: The Heart of Expansion

Bengaluru continues to be India’s largest flexible workspace market, boasting an estimated 29 million sq.ft. of stock as of Q1CY25. IndiQube aims to establish a substantial footprint in this city, planning to add 1.79 million sq.ft. over the next three years. This expansion will span across several key micro-markets, including the Central Business District (CBD), Extended Business District (EBD), Outer Ring Road (ORR), North Bengaluru, and Whitefield. By FY28, IndiQube’s AUM in Bengaluru will surge to 7.22 million sq.ft., making it a pivotal center for operational growth.

Diversification into Other Cities

While Bengaluru will be a focal point, IndiQube is not stopping there. The company also plans to add 740,000 sq.ft. in Chennai, in addition to developing a presence in Tier II cities with 360,000 sq.ft. planned in these emerging markets. This diversification aligns with IndiQube’s growth strategy aiming to tap into underserved locations with high demand for flexible workspaces.

Current Portfolio and Market Growth

As of March 31, 2025, IndiQube manages a robust portfolio comprising 115 centers across 15 cities, covering a total of 8.40 million sq.ft. with a whopping seating capacity for 186,719 individuals. In Bengaluru alone, the company operates 65 centers, encompassing 5.43 million sq.ft. This strong corporate presence in Tier 1 cities such as Pune, Mumbai, Noida, Gurgaon, and Hyderabad further enhances its ability to meet increasing demand in the sector.

Strategic Hub-and-Spoke Model

IndiQube’s innovative hub-and-spoke model allows for the acquisition of smaller properties in new geographic locations to gauge demand and establish a local presence. Once these properties prove their viability and achieve break-even, IndiQube plans to scale up investments in larger, strategically positioned properties. This method not only mitigates risk but also ensures a calculated approach to expansion.

Future Projections in the Flexible Workspace Market

The flexible workspace sector is on a growth trajectory. Market projections indicate that the total workspace stock across Tier I cities is expected to reach 140-144 million sq.ft. by CY2027. The Total Addressable Market for this segment is estimated to achieve a staggering Rs 730-960 billion during the same period. With such significant opportunities on the horizon, IndiQube’s planned expansion is well-positioned to capitalize on this burgeoning market.

Scaling Up: Financial Projections for New Centers

In its fiscal plans, IndiQube aims to add 1.29 million sq.ft. in FY26, 1.24 million sq.ft. in FY27, and 0.54 million sq.ft. in FY28. The allocation of funds for these years will amount to Rs 194.4 crore, Rs 186.8 crore, and Rs 81.3 crore respectively, emphasizing the company’s commitment to rapid growth in flexible workspaces.

Conclusion

IndiQube Spaces Limited is strategically positioned for substantial growth in India’s dynamic flexible workspace market. With its ambitious expansion plans funded by its forthcoming IPO, the company looks set to become a leading player, meeting the evolving demands of modern businesses. As the market continues to expand, IndiQube’s focus on innovation and market penetration will likely yield profitable returns and foster a robust workspace ecosystem across India.