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Tech-Enabled Flex Space Startups indicube It aims to raise around $75 million in equity funding to acquire commercial properties in key cities and expand its portfolio.
“We have become profitable at the company level and are looking to raise equity in the next 12 months. We are seeing a lot of interest in the flexible office operator space from public sector banks and private equity funds,” said the cofounder Rishi Das Said.
The company had secured $30 million funding with promoters’ participation during April 2022 for expansion. Westbridge Capital and angel investors Ashish Gupta, which includes an investment of $17 million by the promoters themselves. The company aims to expand its portfolio to 15 million sq ft, more than doubling its current office space of 7 million sq ft across 85 properties in 12 cities.
Indicube has also entered Tier-2 cities and plans to expand its presence in both Tier-1 and Tier-2 cities.
Das said, “In the last six months, we have leased around 1 million sq ft of office space across major cities and are actively looking at acquiring more assets, as the demand in major cities has grown exponentially. “
IndiQube claims it has turned profitable and has doubled its annual recurring revenue for FY2023 to $100 million over the past year.
Das added, “Our focus remains on profitability and growth. We are witnessing a major shift towards flexible and managed office space and expect the growth momentum to continue with over 88% occupancy across our properties. “
To strengthen its position in the market, the company is pursuing acquisition of office properties along with its existing lease model.
“We are looking for one million sq ft of owned office space under the joint development model in the next two years,” he said. Its client list includes companies like Myntra, Mahindra Logistics, Air India and UltraTech Cement, As businesses strive to reduce costs, maintain closeness with their workforce and offer flexible work options to retain valuable talent, the demand for flexible spaces in India remains strong.
Leasing activity in the January-March 2023 quarter was largely driven by technology companies, while BFSI firms and flexible space operators alike contributed to around 22% space take-up, according to consultancy firm CBRE.
Office leasing activity during the period witnessed a 9% year-on-year growth, reaching 12.6 million sq ft. Bengaluru, Delhi-NCR and Chennai accounted for 62% of the transaction activity in the quarter.
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