IndiQube, a tech-enabled flex space startup, plans to raise nearly $75 million in equity funding to expand its portfolio and acquire commercial assets in major cities.
“We have turned profitable at the company level and want to raise equity over the next 12 months. We are finding that there is a lot of interest in the flexible office operator space from public sector banks and private equity funds,” cofounder Rishi Das said.
In April 2022, the company received $30 million in funding for expansion, with participation from the promoters, WestBridge Capital, and angel investor Ashish Gupta and a $17 million infusion from the promoters themselves. More than doubling its current 7 million sq ft office space spread across 85 properties in 12 cities, the company aims to expand its portfolio to 15 million sq ft.
Additionally, IndiQube has entered tier-II cities and plans to strengthen its position in tier-I and tier-II cities.
“In the last six months, we have leased around 1 million sq ft office space across major cities and are actively looking at acquiring more assets as the demand has picked up strongly across major cities,” said Das.
According to IndiQube, it has achieved profitability and increased its yearly recurring revenue to $100 million for the fiscal year 2023 from the previous year.
“Our focus continues to be on profitability and growth. We are seeing a major shift towards flexible and managed office space and expect the growth momentum to continue with over 88% occupancy across our assets,” said Das.
The company is looking to acquire office properties in addition to its existing lease model to solidify its position in the market.
“We are looking to have 1 million sq ft-owned office space under the joint development model over the next two years,” he said. Companies like Myntra, Mahindra Logistics, Air India, and Ultratech Cement are among its clients. The need for flexible spaces in India has remained high as companies attempt to reduce expenses, keep proximity to their employees, and offer flexible work options to retain valuable talent.
According to the consultancy firm CBRE, technology companies were primarily responsible for leasing in January–March 2023 quarter. BFSI companies and flexible space operators contributed around 22% to the space take-up.
Office leasing activity increased 9% year-on-year, totaling 12.6 million sq ft. Bengaluru, Delhi-NCR, and Chennai accounted for 62% of the transaction activity in the quarter.
