IndiQube, a Bengaluru-based managed workplace solutions provider, secures approval from the Securities and Exchange Board of India (SEBI) to raise up to ₹850 crore through an Initial Public Offering (IPO). The company, founded by Rishi Das and Meghna Agarwal in 2015, is backed by prominent investors like WestBridge Capital and Ashish Gupta. According to the Draft Red Herring Prospectus (DRHP) filed in December 2024, the IPO will consist of a fresh issue of ₹750 crore and an Offer for Sale (OFS) of ₹100 crore.
IndiQube plans to use ₹426.6 crore from the net proceeds for capital expenditure, ₹100 crore for loan repayment, and the rest for general corporate purposes. The company operates 103 centres across 13 cities, including six Tier-II cities, covering 7.76 million square feet with a seating capacity of 172,451 as of June 2024. Its client base includes Myntra, upGrad, Zerodha, NoBroker, and Siemens, among others.
On the financial front, IndiQube reported a revenue of ₹867.6 crore in FY24, up from ₹601.2 crore in FY23. The EBITDA for FY24 stood at ₹263.4 crore, while for Q1 FY25, it reached ₹153 crore. ICICI Securities and JM Financial are the Book Running Lead Managers for the IPO, and the shares will be listed on BSE and NSE.
The flexible workspace market in India is growing rapidly, with over 79 million sq. ft. of stock, primarily in Tier-1 cities. Market experts predict this number will increase to approximately 124 million sq. ft. by 2027, positioning IndiQube for substantial growth.
1. Introduction to IndiQube
1.1 Company Background
IndiQube was founded in 2015 by Rishi Das and Meghna Agarwal to provide flexible and affordable managed workplace solutions for businesses of all sizes. The company has quickly become one of India’s leading co-working space providers.
1.2 Business and Revenue Model
IndiQube generates revenue primarily through long-term leasing agreements with corporate clients. The company also earns through value-added services such as IT support, facility management, and customized workspace solutions.
1.3 Investor Backing and Growth
IndiQube is backed by venture capital firm WestBridge Capital and individual investor Ashish Gupta. Their funding has helped the company scale operations across major Indian cities.
2. IPO Details and Utilization of Funds
2.1 Breakdown of the IPO
The IPO includes:
- Fresh issue of equity shares worth ₹750 crore
- Offer for Sale (OFS) of ₹100 crore
2.2 Utilization of IPO Proceeds
- ₹426.6 crore for capital expenditure
- ₹100 crore for loan repayment
- Remaining funds for corporate purposes
3. Market Presence and Business Operations
3.1 Geographical Expansion
IndiQube secures SEBI approval for ₹850 crore IPO. IndiQube operates 103 centres in 13 cities, including six Tier-II cities. It covers 7.76 million square feet with a seating capacity of 172,451.
3.2 Clientele
IndiQube serves a diverse clientele, including:
- Global Capability Centres (GCCs)
- Indian corporates
- Startups and unicorns such as Myntra, Zerodha, and Siemens
3.3 Competitive Landscape
IndiQube competes with players like Awfis, WeWork India, and Table Space, which are also expanding their operations.
4. Financial Performance and Industry Trends
4.1 Revenue Growth
IndiQube reported:
- FY24 revenue: ₹867.6 crore (43% YoY growth)
- FY24 EBITDA: ₹263.4 crore
- Q1FY25 EBITDA: ₹153 crore
4.2 Industry Growth Trends
- India’s flexible workspace market is over 79 million sq. ft.
- Tier-1 cities account for over 72 million sq. ft.
- The market is expected to grow to 124 million sq. ft. by 2027
5. Learning for Startups and Entrepreneurs
5.1 Strategic Growth Through Funding
IndiQube’s ability to scale operations showcases the importance of securing venture capital and IPO funding for expansion.
5.2 Adaptability in Business Models
Startups should focus on flexible business models to cater to evolving market demands, as demonstrated by IndiQube’s managed workplace solutions.
5.3 Financial Planning and Profitability
Maintaining a strong financial foundation with revenue growth and controlled expenditures is critical for long-term success.
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