IWG, a leading provider of flexible office spaces, plans to open 40 new centers by the end of 2025 through its growing partnership model, building on the 10 centers it launched between January and April 2025, according to regional CEO Marc Descrozaille.
“We have been in India since 2004 and and it took us all these years to get to 105 centers, with Regus initially, and later with Spaces and HQ. Conditions have changed after covid, both on the demand and the supply side. Clients want to be able to work from different office spaces. And therefore we expect growth going forward,” he said.
The company recently rolled out a partnership model, marking a significant shift in its operations.
“We are operating the space, bringing in the clients, and managing all distribution while landlords are investing in the space,” said the company, adding that it is transitioning from a traditional tenant approach to becoming strategic partners.
While the company is actively expanding its partnership model, it still values its legacy lease and sub-lease approach. IWG plans to continue operating its existing centers under the traditional model unless landlords specifically request a transition to the new partnership structure.
As of now, the convention model contributes about 75-80% of our overall revenue. At some point of time the ratio will be 50:50,” said Descrozaille.
He however admits that the margins typically for this new model will be smaller. “But on the other hand, IWG will not make the upfront investment.”
“Equally important is ensuring we have the right talent in place to support this growth. That means investing in our people—developing internal capabilities, building succession pipelines, and aligning our teams with long-term goals,” he said.
Regarding the opportunity in India, he noted that the country currently ranks among IWG’s top 15 global markets. With strong respect for and recognition of the market’s potential, the company aims to position India within its top three or four markets over the next five years.
“One element that is very unique to India is the size of the market. In other countries when we think of expanding, we think of moving from tier-I to tier-II cities, but in India we can even go to tier-III and tier-IV cities. So it’s very much a volume game, which is quite unique in terms of the size in India compared to anywhere else,” said Descrozaille.
IWG is strategically expanding its footprint with plans to open 40 new centers by the end of 2025, driven by a growing shift toward its partnership model. While the company continues to value its traditional lease structure, it is adapting to changing market dynamics and landlord preferences. With India emerging as a key growth market, IWG is setting ambitious goals to elevate its position among the company’s top global markets in the next five years.
