IndiQube Spaces, a leading player in India’s flexible workspace space, is going to raise INR 850 crore through its upcoming IPO. With an asset-light model, strong presence in Bengaluru and growing pan-India presence, the company is looking to ride the hybrid work and workspace decentralisation wave.
But despite rapid revenue and area under management growth, IndiQube has been posting losses for several years, raising questions on profitability and operational efficiency. IndiQube Spaces IPO review offers a comprehensive analysis of the offering, including financial performance, industry landscape, and underlying unit economics.
IndiQube Spaces IPO Review: Business Overview
Incorporated in 2015, IndiQube Spaces provides managed workspace solutions to enterprises, startups and SMEs. The company combines leasing, interior design, facility management and value added services (VAS) like IT infrastructure, furniture, F&B and transport to offer a “workspace as a service” model.
Business Segments:
- Hub Offices: Full building managed campuses
- Spoke Offices: Satellite offices in the city periphery
- Value-Added Services (VAS): Ancillary services beyond leasing
Portfolio Snapshot (as of 30 June 2024):
| Metric | Value |
|---|---|
| Centers Operated | 103 |
| Cities Covered | 13 (vs. 8 in FY22) |
| Area Under Management (AUM) | 7.76 million sq. ft. |
| Total Seating Capacity | 1,72,451 |
| Bengaluru Share of AUM | 5.04 million sq. ft. (65%) |
The company added 3.73 million sq. ft. of new AUM across 41 properties and 5 cities since March 2022.
Industry Overview
The Indian commercial real estate (CRE) sector is undergoing a structural shift driven by hybrid work models, ESG priorities, and cost-sensitive corporate behaviour. Key market data from CBRE and the company’s DRHP reveals:
- Flex workspace stock across 9 Tier-1 cities doubled from 35 million sq. ft. (2020) to 72 million sq. ft. (June 2024)
- 59% of firms are expected to have >10% of their office space in flexible formats by 2026, up from 42% in 2024
- Increasing adoption of Core+Flex strategies by Global Capability Centres (GCCs), tech firms, and BFSI clients
- Smaller enterprises seek to convert capex to opex, enabling IndiQube’s growth beyond Tier-1 cities
These trends support IndiQube’s multi-format offerings and long-term demand outlook.
💼 Revenue Model: Leasing + Services
IndiQube earns revenue primarily from two sources:
- Workspace Leasing
- Includes rentals, maintenance (CAM), and electricity charges
- Value-Added Services (VAS)
- Includes sale of furniture, IT equipment, F&B, and other facilities
Revenue Composition:
| Period | Workspace Leasing (INR Cr) | % of Leasing Ops Revenue | VAS (INR Cr) | % of VAS Ops Rev | Total Revenue (INR Cr) |
|---|---|---|---|---|---|
| FY25 | 926.50 | 87.5% | 134.92 | 12.74% | 1,102.93 |
| FY24 | 741.58 | 89.3% | 92.20 | 11.1% | 830.57 |
| FY23 | 515.24 | 88.9% | 68.17 | 11.8% | 579.74 |
| FY22 | 311.11 | 90.4% | 35.19 | 10.2% | 344.11 |
VAS acts as a margin enhancer while leasing remains the core revenue driver.
IndiQube Spaces IPO Review: Financials at a Glance
Despite a strong top-line trajectory, IndiQube remains significantly loss-making, with high operating costs and capital requirements.
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Revenue | 344.11 | 579.74 | 830.57 | 1,059.29 |
| Expenses | 579.24 | 829.21 | 1,252.48 | 1,260.23 |
| Net Loss | (188.38) | (198.11) | (341.51) | (139.62) |
| Net Margin (%) | -54.7% | -34.2% | -41.1% | -13.18% |
| EBITDA Margin (%) | 40.9% | 44.5% | 31.7% | 62.32 |
| ROCE (%) | 18.2% | 15.7% | 38.5% | 34.21 |
| RONW (%) | NA | NA | -261.4% | NA |
| Debt-to-Equity Ratio | -2.62 | -2.02 | 1.26 | (110.58) |
The fall in EBITDA margin and increase in net loss in FY24 suggest diseconomies of scale and capex front-loading.
📦 Use of IPO Proceeds
| Purpose | Allocation (INR Cr) |
|---|---|
| New Center Development (CapEx) | 462.65 |
| Debt Repayment / Prepayment | 100.00 |
| General Corporate Purposes | Balance |
CapEx per new center will be a critical determinant of future cash flow break-even.
IndiQube Spaces IPO Review: Unit Economics & Scalability Potential
Revenue per Sq. Ft. (FY24):
- Total AUM: 7.76 million sq. ft.
- Revenue from Ops: INR 830.57 Cr
- Implied Revenue/Sq. Ft./Yr: INR 1,070 (or ₹89/month)
This is below average commercial lease rates in Tier-1 cities, but includes blended pricing across Tier-2 markets and various VAS services.
Cost Structure:
- Fixed costs (leases, depreciation, interest) constitute majority of expenses
- Employee and facility costs scale with centre count
- Economies of scale remain elusive, as seen from declining EBITDA margin
Breakeven Occupancy Threshold:
- Though exact occupancy data is unavailable, assuming a cost breakeven at ~65% occupancy per center, IndiQube may currently operate near that level given gross margin positive EBITDA.
Future Efficiency Triggers:
- Shift toward higher-yield Tier-2 cities
- Expansion of VAS revenue mix
- Reduced lease liabilities through shorter terms or variable agreements
- CapEx control through vendor partnerships or turnkey buildouts
Promoter Shareholding & Structure
| Sr. No. | Shareholder | Pre-Offer Shares | % Holding |
|---|---|---|---|
| (A) Promoters | |||
| 1 | Rishi Das | 3,46,46,225 | 18.84% |
| 2 | Meghna Agarwal | 3,46,46,154 | 18.84% |
| 3 | Anshuman Das | 4,62,42,229 | 25.15% |
| Total (A) | 11,55,34,608 | 62.84% | |
| (B) Promoter Group | |||
| 4 | Careernet Technologies | 94,67,282 | 5.15% |
| 5 | Hirepro Consulting | 39,49,162 | 2.15% |
| 6 | MMARS Trust | 1,42,000 | 0.08% |
| 7 | SRI Family Trust | 1,42,000 | 0.08% |
| 8 | A4 Family Trust | 1,42,000 | 0.08% |
| Total (B) | 1,38,42,444 | 7.53% | |
| Total (A+B) | 12,93,77,052 | 70.37% |
The Offer for Sale of INR 100 crore is equally split between Rishi Das and Meghna Agarwal, reducing their holdings but not impacting control.
📊 Competitive Positioning
| Metric | IndiQube | Awfis |
|---|---|---|
| Revenue (FY24) (INR Cr) | 867.66 | 1,207.54 |
| EPS (INR) | (10.73) | 9.56 |
| RONW (%) | NA | 14.78% |
| NAV (INR) | (0.24) | 64.71 |
Despite a similar scale, IndiQube lags significantly in capital efficiency and earnings. This reflects its aggressive expansion and higher burn model relative to Awfis.
Final Verdict
IndiQube Spaces presents a compelling growth story in a rapidly evolving sector, but it suffers from weak financials and margin pressures. Suitable only for high-risk, long-horizon investors seeking exposure to India’s CRE-tech transformation.
✅ Strengths:
- Strong revenue CAGR (>50% over 3 years)
- Sector leadership in Bengaluru
- Tailwinds from hybrid work and cost-driven real estate demand
- Expanding into Tier-2 markets at scale
⚠️ Risks:
- High fixed costs and continued net losses
- Unclear path to profitability
- Heavily concentrated AUM (65% in Bengaluru)
- Negative EPS, high debt/equity ratio post-expansion
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