Indiqube Spaces Limited – Fast Growing Flexible Workspace Player

Indiqube is a fast growing flexible workspaces operator based in Bangalore. It services a diverse range of clients with flexible office needs. As of March 2025, it managed 8.4 msft across 115 centers in 15 cities, with a total client base of more than 750. Its key markets are Bangalore and Chennai with Bangalore being the largest.

Its competitive strategy is to acquire full buildings in high demand micro markets and renovate older Grade B properties. It is also strategically diversifying into an asset light model that involves leasing properties instead of owning them.

It has witnessed a robust revenue growth over the past 2 years. However, the company makes losses and has a negative net worth.

Its IPO of INR 7000 million is being primarily done to fund capex needs of new centers.

Offer Details of the IPO

Fresh Issue and Offer for Sale

The IPO comprises a fresh issue of up to INR 6,500.00 million and an offer for sale of up to INR 500.00 million. The offer for sale is being made by the promoters, Rishi Das and Meghna Agarwal, who are selling up to INR 250.00 million each.

Price Band: INR 225 to INR 237/- per Equity Share

Offer Size and BRLMs

The issue is Lead Managed by ICICI Securities Limited and JM Financial Limited. They are in charge of leading the book building process and pricing the offer.

Objectives of the IPO

The net proceeds will be used for financing capital expenditures, paying off borrowings and other corporate needs. Following are the details:

Capital Expenditures

• Finance capital expenditure for opening of new centres : INR 4,626.49 million.
• The firm plans to use the net proceeds to set up new centres in India with an aim to expand in Bengaluru, Chennai, Pune and other tier-II cities.

De-leveraging/Repayment of Debt

• Repayment/pre-payment (in full or part) of certain borrowings availed by the company: INR 930.35 million
• The proceeds will be used to repay borrowings drawn under certain types of credit facilities from different banks and financial institutions.

Industry Overview – Flexible Workspace Industry

The flexible workspace industry, also referred to as shared office space or coworking, is a type of real estate that provides working accommodations for individuals, startups, small businesses, and large corporations, on a flexible basis. The industry offers its clients convenience in terms of products and services, from ready-to-use offices and meeting rooms, to virtual offices and business services, such as reception, IT and administrative support. The industry’s customers range from freelancers and entrepreneurs running start-ups to small and large corporates looking for flexible and affordable work space solutions.

Key Segments within the Industry

Coworking Spaces:

Coworking spaces are communal workspaces that provide a friendly, casual office environment for individuals and/or organizations. These spaces generally offer amenities including high speed internet, print and copy facilities, meeting rooms and networking opportunities.

Serviced Offices:

Serviced offices (or executive suites) offer private office spaces with amenities such as reception, IT and administrative support services. Such offices usually are situated in central business areas and also provide a more traditional office setting.

Virtual Offices

Virtual offices provide businesses with a professional place of business for presenting to clients, along with phone answering services and mail services, and do not require members to have an actual office space. This is perfect for those who need a professional front for their business but no physical location.

Managed Offices

Managed offices provide tailored office space service which could include IT, admin and facilities management. This is ideal for companies that are in need of a bespoke office solution with a high service and support aspect.

Size & Growth

The flexible workplace industry has seen considerable growth for a variety of reasons. Changing workforce demographics, automation, technology and employee expectations are among the most significant. The total size of the industry reached approximately 96 msft as of 2025. This is estimated to grow to 140-144 msft by 2027.

Key Drivers of Growth

Flexible workspace: the numbers The expansion of the flexible workspace market is being driven by a number of factors:

Changing Workforce Dynamics: The gig economy, heightened demand for flexible working arrangements, and the greater prevalence of freelancers and remote workers are fueling demand for flexible workspaces.

Shift in Technology: With the evolution of technology, including cloud computing, artificial intelligence and the Internet of Things (IoT), the workspaces are becoming more and more productive and efficient.

Changing Employee Expectations: Employees are having higher expectations from their workplaces leaning towards flexibility, a sense of community and autonomy – which flexible workspaces can deliver.

Company Overview

Background and History

IndiQube Spaces Limited previously called as Innovent Spaces Private Limited is a managed work place solutions provider that creates and endorses workplace environment by providing full suite of efficient, sustainable and technology driven work place solutions and service. The company was founded in 2015 and is headquartered in Bengaluru, India.

The company’s co-founders Rishi Das, Meghna Agarwal and Anshuman Das have more than two decades of entrepreneurial experience across varied sectors. Rishi Das, CEO has an experience in the talent solutions space while Meghna Agarwal, COO has spent her time in operations and business management. Anshuman Das (Non Executive Director) is the co-founder of companies like CareerNet as well as, Hirepro Consulting Private Ltd.

The company operates through the following 5 business segments:

IndiQube Grow: This segment provides plug-n-play workspaces on lease properties for large enterprises and co-working tenants on talent focused locations.

IndiQube Bespoke: This category offers design and build solutions for clients, to enable them to build a workspace that is a replica of their brand identity / operational needs.

IndiQube One: This division provides end-to-end solutions to B2B and B2C customers, such as facility and asset maintenance, plantation services and catering and transportation for employees.

MiQube: This division connects technology solutions and a network of smart devices that cater to customers, their employees and frontline facility management teams.

IndiQube Cornerstone: This category redevelops aging properties by providing digital enhancements, amenities and green features etc to create technology-driven workspace.

Following are the key products and services of the company

• Workspace leasing
• VAS (value added services) comprising of interior design, facility management and technology based services
• Asset renovation and upgradation
• Customized build-to-suit models
• Marketing and transaction solutions for clients and clients’ employees, including B2B and B2C solutions

Notable Investors in the company:

• WestBridge Capital: A venture capital company that has invested in the company.
• Aravali Investment Holdings: A private equity outfit, has invested in the company..

Competitive Landscape

The industry is competitive with a number of well known players. The key competitors include:

• Smartworks: Smartworks is India’s largest provider of agile workspaces, with presence in nine cities and 23 centers.
• Awfis: Another well known name in the flexible workspace sector, Awfis has a presence in 17 cities and 181+ centers. They specialize in offering affordable, quality office space to startups and small business.
• WeWork India: WeWork India is the Indian affiliate of the global shared office space provider WeWork. They operate in 8 cities and 53 + centers with strong focus on delivering quality workspaces to large enterprises.

Competitive Positioning

In comparison to its competitors, the company has a strong presence in the market with a large portfolio of centers across India. The company’s focus on providing high-quality, customizable office spaces has helped it to differentiate itself from its competitors.

Key Strengths:

• Large portfolio of centers across India
• High-quality, customizable office spaces
• Strong focus on customer service

Key Weaknesses:

• High competition in the market
• Dependence on a few large clients.

Market Share

The company has a significant market share in the Indian managed office space market. According to a recent report, the company has a market share of around 20% in the Indian market, making it one of the leading players in the industry.

Financial and Operational Highlights

The company has a sound financial and operational track record with a credit rating of CRISIL A+ /Stable, an occupancy of 86.50% in steady state centres, return on capital employed of 34.21% and cash EBIT margins of 10.81%.

Following is a discussion about its financials:

Limited Geographic Presence:

The company is present in relatively lesser number of cities than some of its large competitors. It is present in 15 cities in India and majority of the listings are in Bengaluru and Chennai. This narrow geographic reach may be limiting the number of new growth opportunities for company.

Company is yet to make sustainable profits

The company continues  to make losses. While it narrowed, the company made a loss of INR 1396.2 million in FY25. Total expenses increased by 0.62% from INR  12,524.82 million in Fiscal 2024 to INR  12,602.34 million in Fiscal 2025 primarily on account of increase in purchases of traded goods, employee benefits expense, finance costs, and depreciation and amortization expense.

Well diversified customer base

The company’s revenues are well diversified. Its top customer represented 3.47% of its revenue as of March 31, 2025. Top-5 customers accounted for 11.8% of its revenue. Moreover, the company states that the clientele is diversified across various industries; and it maintains a low exposure to any given client or sector.

Robust revenue growth

The company grew its revenue at 27.12% from INR  8,676.60 million in FY2024 to INR  11,029.31 million in FY2025. This growth is mainly due to increase in revenue from operations by 27.54% from INR  8,305.73 million in Fiscal 2024 to INR  10,592.86 million in Fiscal 2025.

• Workspace rentals form the mainstay of the business: Workspace rental continues to be the primary revenue driver for the company, making up 87.46% of the total revenue in Fiscal 2025. The increase on workspace leasing revenue is mainly due to a growth in occupied area of 4.28 million square feet in Fiscal 2024 to 5.33 million square feet in Fiscal 2025, as well as an increase in occupancy rate from 80.21% in Fiscal 2024 to 85.12% in Fiscal 2025.
• Value-Added Services Becoming a Revenue Driver: Its value-added services (VAS) division is also rapidly scaling up, from INR  921.99 million in Fiscal 2024 to INR  1,349.21 million in Fiscal 2025. This growth is attributed to the company’s successful diversification into various VAS like interior design and build, facility management, food and transport services, and technology solutions.

Strong capacity addition: The company’s topline growth is driven by addition of capacity. Subsequently, the company’s active inventory has increased from 4.39 million square feet as of March 31, 2023 to 6.92 million square feet as of March 31, 2025, suggesting room for growth in the short term.

Table 1: KPI Comparison

Source: RHP

Table 2: Comparison of Financials and Valuation\

Source: RHP