Credit: Special Arrangement
Armed with a first mover advantage, co-working space provider IndiQube is looking to expand its presence to over 40 cities in the next 3 years, company co-founder and chairman Rishi Das told DH in an exclusive interview on Monday.
“If we do not expand then we’re leaving a lot of space for our competition to come in,” he reasoned. The brand is also eyeing a Rs 900-crore topline this fiscal, targeting an over 50% year-on-year growth.
The office space major, which turned profitable in FY23, is looking to raise $75 million in a 12-month horizon to fund its upcoming projects.
Das highlighted a two-pronged strategy for expansion into Tier-II cities. One is to respond to customer demand. The other is proactively picking a city to enter, based on its strategic advantages, such as its education, social or business infrastructure.
“For the first 20 years of the IT industry boom people went where jobs were, now jobs are going where people are,” he remarked.
The pandemic has marked a tectonic shift for the flexible work space model. For over 20 years people migrated 1,500-2,000 miles for a job. However, after the pandemic, people are contemplating if they should return, especially if the work location is within a 500 km radius. Cities like Indore, Coimbatore and Nagpur fit that kind of profile very well, he explained.
Das however, pointed to an absence of quality real estate supply in Tier-II cities as a significant bottleneck. “About 50% of our business in tier II cities comes from our existing clients, while the figure stands at one-third for the larger markets,” he noted.
After adding Madurai & Kochi to its portfolio this financial year, IndiQube cumulatively runs 90-plus facilities spanning 6 million square feet across 12 cities. Bengaluru continues to be the brand’s biggest market with 58 properties.
The company’s portfolio is divided into a 9:1 ratio between managed offices and co-working spaces. It counts global capability centres, including those of Fortune 500 multinational companies, and startups amongst its major clientele. A typical leasing contract involves a three year commitment period. “Our business is a large space, long stay business,” Das said.