IndiQube Files DRHP with SEBI for ₹850 Crore IPO

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IndiQube, a prominent Bengaluru-based managed workspace solutions provider, has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO) worth Rs 850 crore. The IPO will include a fresh issue of equity shares valued at Rs 750 crore and an Offer for Sale (OFS) of Rs 100 crore by its co-founders, Rishi Das and Meghna Agarwal. The company plans to use the funds raised to expand its network, repay debt, and cover general corporate expenses. With a robust presence across 13 cities, IndiQube is capitalizing on the growing demand for flexible workspaces, especially in Bengaluru, which leads the market in India’s commercial office and coworking sectors.

Introduction to IndiQube and its Growth Model

Bengaluru-based IndiQube files DRHP with SEBI for Rs 850 crore IPO

IndiQube, a leader in India’s flexible workspace market, is set to go public by filing its Draft Red Herring Prospectus (DRHP) with SEBI. The company aims to raise Rs 850 crore through its IPO, with Rs 750 crore from a fresh issue and Rs 100 crore from an Offer for Sale (OFS) by founders Rishi Das and Meghna Agarwal. The IPO marks a key milestone as IndiQube continues to transform the office space landscape with its flexible, plug-and-play solutions, expanding its presence on the NSE and BSE.

IndiQube’s Business and Revenue Model

Founded in 2015, IndiQube offers flexible, ready-to-use office spaces with integrated technology and facilities management. Its core service, IndiQube Grow, provides fully equipped offices optimized for productivity. Revenue comes from renting office spaces and value-added services like facility management and technology infrastructure. Serving clients like Myntra, upGrad, Zerodha, Siemens, and Narayana Health, IndiQube’s plug-and-play model helps businesses reduce capital expenditure and boost efficiency.

Founders and Funding Background

With a vision to provide businesses with flexible, sustainable, and tech-driven workspaces, the founders have led the company through significant growth, expanding its reach to 103 centers across 13 cities in India.

The company has raised significant funding from prominent venture capital firms, including WestBridge Capital and angel investor Ashish Gupta. WestBridge Capital, based in Bengaluru, holds a 5.08% stake in the company, while Gupta’s investment further solidifies IndiQube’s financial backing.

The IPO and Fund Utilization

• ₹462.6 crore for funding capital expenditure to establish new office centers.
• ₹100 crore for the repayment and prepayment of certain borrowings, which will help in reducing the company’s overall debt burden.

The company’s revenue grew significantly, reaching ₹867.6 crore in FY2024, up from ₹601.2 crore in FY2023. IndiQube’s operating profit for FY2024 stood at ₹263.4 crore, demonstrating the scalability and profitability of its business model.

IndiQube’s Market Presence and Future Outlook

IIndiQube operates mainly in Tier 1 cities, with Bengaluru as its key market. By June 30, 2024, it manages 103 office centers across 13 cities, covering 7.76 million square feet. Bengaluru now holds over 30% of Tier 1 city flexible office space.

Learning for Startups and Entrepreneurs

: The journey of IndiQube offers valuable lessons for entrepreneurs and startups:

• Innovative Business Models: IndiQube’s plug-and-play office solutions have transformed commercial real estate. Entrepreneurs should identify market gaps and create solutions to address them.
• Scalable Operations: IndiQube’s ability to expand efficiently across cities highlights the importance of strong infrastructure and management in scaling a business.
• Adapting to Market Trends: The rise of hybrid work and flexible spaces shows changing workplace culture. Startups can thrive by staying ahead of trends and aligning with market demand.
• Effective Use of Funding: IndiQube’s IPO is aimed at raising capital for growth and debt reduction. Startups should learn to structure funding rounds and use capital wisely for long-term success.

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