IndiQube plans to raise $75 million

June 19, 2023

Tech-enabled flex space startup IndiQube aims to raise about $75 million in equity funding to acquire commercial assets in major cities and expand its portfolio.

“We have turned profitable at the company level and are looking 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.

The company had secured $30 million in funding during April 2022 for expansion, with participation from promoters, WestBridge Capital and angel investor Ashish Gupta, including a $17-million infusion by the promoters themselves. The company aims to expand its portfolio to 15 million square feet, more than doubling its current office space of 7 million sq ft across 85 properties in 12 cities.

IndiQube has also made an entry into tier-II cities and plans to enhance its presence in both 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.

IndiQube claims it has turned profitable and doubled its annual recurring revenue to $100 million for fiscal 2023 compared with 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.

In a bid to solidify its position in the market, the company is pursuing the acquisition of office properties alongside its existing lease model.

“We are looking to have 1 million sq ft-owned office space under the joint development model over the next two years,” he said. Its client list includes companies such as Myntra, Mahindra Logistics, Air India and Ultratech Cement. As businesses strive to reduce costs, maintain close proximity to their workforce and provide flexible work options to retain valuable talent, the demand for flexible spaces in India has remained strong.

According to consultancy firm CBRE, leasing activity in the January-March 2023 quarter was largely driven by technology companies, while BFSI firms and flexible space operators equally contributed to the space take-up at about 22% each.

Office leasing activity witnessed a 9% year-on-year increase, reaching 12.6 million sq ft during this period. Bengaluru, Delhi-NCR and Chennai accounted for 62% of the transaction activity in the quarter.

  • Published On Jun 19, 2023 at 08:59 AM IST

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