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Bengaluru-based managed workspace provider IndiQube Spaces Ltd is gearing up for a nationwide expansion and is looking to take its total area under management (AUM) to 11.47 Mn sq ft by FY28.
The company, whose IPO is set to open tomorrow, plans to deploy INR 462.6 Cr from the fresh issue proceeds towards scaling its flexible workspace portfolio across India.
The company aims to add 3 Mn sq ft of flexible workspace through new centres over the next three fiscal years. Bengaluru alone is expected to account for 1.79 Mn sq ft of this additional growth, pushing IndiQube’s footprint in the city to 7.22 Mn sq ft.
The phased expansion will see the addition of 1.29 Mn sq ft of managed workspace in FY26, 1.24 Mn sq ft in FY27 and 0.54 Mn sq ft in FY28 with an investment of INR 194.4 Cr, INR 186.8 Cr and INR 81.3 Cr, respectively.
Through this capital infusion and focused expansion, IndiQube aims to expand the breadth and depth of its commercial real estate portfolio nationwide, addressing the growing demand for managed flexible workspaces.
Notably, IndiQube managed 115 centres in 15 cities, covering 8.40 Mn sq ft with a seating capacity of 1.86 Lakh as of March 31, 2025. Bengaluru was the largest contributor to this, housing 65 centres with 5.43 Mn sq ft of AUM.
Hub-and-Spoke Model Driving Geographic Expansion
Over the next three years, IndiQube plans to strengthen its presence in both established tier I cities and high-potential tier II markets. As part of this strategy, the company will add 7.4 Lakh sq ft to its Chennai portfolio and expand its portfolio by an additional 3.6 Lakh sq ft across select tier II cities.
Currently operating in eight tier I cities, including Bengaluru, Pune, Chennai, Mumbai, Noida, Gurugram and Hyderabad, IndiQube aims to drive growth through a dual approach – expanding into new non-tier I markets while simultaneously deepening its presence in existing locations.
IndiQube employs a hub-and-spoke model to drive its market expansion. Under this approach, the company initially invests in smaller properties (spokes) in new geographies to evaluate local demand and establish a presence. Once these properties reach breakeven and demonstrate market viability, IndiQube scales up by investing in bigger properties (hubs) in the same market.
With an estimated 29 Mn sq ft of flexible workspace stock as of Q1 in 2025, Bengaluru remains India’s undisputed flexible workspace hub. Operators are strategically expanding into micro-markets such as the Central Business District, Extended Business District, Outer Ring Road, North Bengaluru and Whitefield in the country’s IT capital.
Industry projections predict the total workspace stock across tier I cities to grow to about 140-144 Mn sq ft by the end of 2027, with the total addressable market expected to reach between INR 73,000 Cr to INR 96,000 Bn by that time.
IndiQube’s Public Issue
IndiQube’s IPO, which will close on July 25, comprises a fresh issue of INR 650 Cr and an offer for sale (OFS) of INR 50 Cr. A day before the opening of the public issue for subscription, the company raised INR 314 Cr from anchor investors.
Besides establishment of new centres, IndiQube plans to use INR 100 Cr from the IPO proceeds to repay certain borrowings. The remaining amount will be utilised for general corporate purposes.
On the financial front, the company’s operating revenue surged 28% YoY to INR 1,059.3 Cr in FY25 from INR 830.6 Cr in FY24. However, it continues to be a loss-making entity. IndiQube’s net loss for FY25 narrowed by about 60% to INR 139.6 Cr from INR 341.5 Cr in the previous year.
The company counts 769 companies, including Myntra, Zerodha, upGrad, Siemens and Moglix, among its clients.
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