About Indiqube Spaces Limited

BUSINESS OVERVIEW

Indiqube Spaces is a managed workplace solutions company offering comprehensive, sustainable, and technology-driven office solutions aimed at redefining the traditional workplace experience. Backed by an experienced management team with an entrepreneurial track record since 1999, the company provides end-to-end solutions—from large corporate hubs to smaller branch offices (spokes)—across multiple cities.

The workspace offerings include interior design, green initiatives, and a wide range of value-added services (VAS) such as facility management, asset maintenance, plantation, catering, transportation, and technology applications, delivered through contracts with in-house and third-party clients.

Business operations are strengthened through backward integration (asset renovation, build-to-suit models) and forward integration (B2B and B2C VAS), along with a core plug-and-play office solution that addresses the entire workspace value chain.

As of March 31, 2025, the company manages a portfolio of 115 centers across 15 cities, including 105 operational centers and 10 under LOIs, with a total area under management (AUM) of 8.40 million sq. ft. and 186,719 seating capacity. Between March 31, 2023, and March 31, 2025, it added 41 properties, 3.46 million sq. ft. of AUM, and entered five new cities.

The Bengaluru market accounts for the largest presence with 65 centers spanning 5.43 million sq. ft. of AUM. As of the same date, over 769 clients across sectors such as IT/ITeS, BFSI, manufacturing, healthcare, e-commerce, logistics, and edtech have been served, including GCCs, Indian corporates, unicorns, and startups.

The company is present in 15 cities, covering eight Tier I cities—Bengaluru, Pune, Chennai, Mumbai, Noida, Gurugram, Kolkata, and Hyderabad—and seven non-Tier I cities, including Coimbatore, Kochi, Madurai, Jaipur, Kozhikode, Mohali, and Vijayawada. As of March 31, 2025, they had 689 total employees (including employees appointed on contractual basis) across our operations. The Bankers to the company are State Bank of India and Axis Bank.

INDUSTRY ANALYSIS

Indian Office Market: An In-Depth Overview

Organized Office Stock Size and City-Wise Concentration

As of March 31, 2025, India’s organized commercial office stock reached approximately 883 million sq. ft., predominantly concentrated in nine Tier-I cities. These include Bengaluru, Mumbai Metropolitan Region (MMR), Hyderabad, Gurgaon, Chennai, Pune, Noida, Kolkata, and Delhi, ranked in order of market size.

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Evolution of the Indian Office Market

Over the past 25 years, India’s office real estate sector has witnessed a dramatic transformation. Back in the early 2000s, the total office stock was just 44 million sq. ft.. Today, it has surged more than 20-fold, reaching 883 million sq. ft. This remarkable expansion has been fueled by:

• Robust economic growth

• Enhanced business environments

• Changing work culture

• Competitive costs

• Skilled workforce

• Investor-friendly regulatory frameworks

Between CY2011 and CY2018, commercial office stock grew from 341 million sq. ft. to 591 million sq. ft., reflecting a CAGR of 8.2%. Between CY2019 and CY2024, annual supply additions averaged 45–50 million sq. ft.

Going forward, between CY2025 and CY2027, the annual average supply is projected to increase to 63–68 million sq. ft., driven by:

• Rising demand for modern office spaces

• Urban infrastructure development and connectivity improvements

• State-level policies including Transit Oriented Development, REITs, and SM REITs

• Increased focus on workplace amenities, sustainability, and ESG compliance

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Demand and Absorption Trends

• In CY2019, India recorded a gross absorption of 66.6 million sq. ft.

• The pandemic years (CY2020–2021) saw muted activity due to global uncertainty and lockdowns.

• Recovery began in CY2022, with 62 million sq. ft. of gross absorption, a sharp jump from 44.8 million sq. ft. in CY2021

• In CY2023, leasing activity grew further to 68 million sq. ft. (up 9.7% YoY)

• CY2024 set a new record with 78.9 million sq. ft. of space absorbed

• In Q1 CY2025, the sector reported 17.4 million sq. ft. of absorption, outpacing the 10.2 million sq. ft. of new supply

Future Outlook

With sustained leasing momentum, strategic expansions by domestic and global firms, and active investments, CY2025 is expected to witness continued growth. Key hubs such as Bengaluru, Hyderabad, Delhi-NCR, and Mumbai will remain dominant, while Chennai and Pune are gaining traction due to:

• Robust supply pipeline

• Availability of skilled talent

• Shift in occupier interest beyond traditional gateway cities

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Grade-wise Office Stock Composition

As of March 31, 2025:

• Grade A stock accounted for 85.1% (751 Mn sq. ft.)

• Grade B stock stood at 14.9% (132 Mn sq. ft.)

Grade A office stock has grown at a CAGR of 14%, from 58 Mn sq. ft. in 2005, while Grade B expanded at a CAGR of 6%, from 44 Mn sq. ft. Redevelopment and refurbishment have gained momentum, particularly across older assets in Tier I cities:

• Nearly 52% of completed stock is over 10 years old

• 63% of this aged stock comprises properties under 500,000 sq. ft.

• Redevelopment efforts, supported by REITs and large developers, focus on structural upgrades, ESG compliance, and modern amenities

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Ownership Classification of Office Stock

As of March 31, 2025:

• 70.2% of the organized office stock is non-institutionally owned

• 29.8% is institutionally owned

Institutional Ownership

Institutional stock has grown from 156 Mn sq. ft. in 2016 to 263 Mn sq. ft. in 2025, at a CAGR of 6.5%. Major contributing cities include:

• Bengaluru

• Chennai

• Hyderabad

• Mumbai

Key institutional players include:
Blackstone, Embassy REIT, Brookfield REIT, Mindspace REIT, GIC, CapitaLand, Mapletree, CPPIB, Bain Capital, Godrej Fund, Hines, among others.

Non-Institutional Ownership

This segment is further split into:

• Strata Stock: Units sold to HNIs, investors, and end-users

• Non-Strata Stock: Entirely held by developers

Of the 620 Mn sq. ft. of non-institutional stock, 42% (263 Mn sq. ft.) has been sold through strata transactions.

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Conclusion: Maturity and Modernization

India’s office market has evolved from a fragmented and developer-centric landscape to a mature, organized, and investment-attractive sector. The emphasis is shifting toward:

• Institutional-grade assets

• Redevelopment of ageing properties

• Increased leasing by global corporations

• Growth of REITs and flexible workspaces

This positions India’s commercial real estate sector, especially Grade A office space, as a resilient and attractive investment asset class in the coming years.

BUSINESS STRENGTHS

1. Leadership in a Large and Growing Flexible Workspace Market
India’s flexible workspace stock stood at 96+ million sq. ft. as of March 31, 2025, with over 90% concentrated in Tier-I cities. Demand in non-Tier I markets is also rising. The total addressable market (TAM) is projected at 280–300 million sq. ft. (area) and ₹730–₹960 billion (value) by 2027.

2. Strategic Acquisition Focus
85.39% of the portfolio is concentrated in key micro-markets that offer high value creation and long-term relevance. Market scale in these locations provides superior local insights and opportunity responsiveness.

3. Capital-Efficient, Asset-Light Model
Operates on a lease-based model with 10-year agreements, 3-year lock-ins, and extension rights up to 20 years. Built-in termination clauses offer flexibility and risk mitigation.

4. Strong Leadership and Investor Backing
Founded by Rishi Das (IIT Roorkee alumnus, CEO), Meghna Agarwal (IMT Ghaziabad alumnus, COO), and Anshuman Das. Rishi Das also co-founded CareerNet. Meghna Agarwal has over 20 years of experience and has received recognitions such as the Best Woman Performer in Business Innovations Award 2024 and Young Achievers Award 2019.

5. Commitment to Sustainability and Green Buildings
Focused on energy, water, and waste management, with green initiatives like solar rooftops, STPs, rainwater harvesting, and energy-saving systems. As of March 31, 2025:

• 36.44% of operational space (29 centers, 2.52 Mn sq. ft.) certified by IGBC and LEED

• 0.75 Mn sq. ft. across 7 centers under green certification approval

BUSINESS STRATEGIES

1. Expand Area Under Management (AUM) through Strategic Market Penetration
As of March 31, 2025, workspace solutions span 8.40 million sq. ft. across 115 properties in 15 cities. The growth strategy focuses on broadening city presence, including non-Tier I markets, and deepening micro-market penetration within existing cities. Initial entry in new locations is led by smaller “spoke” properties, followed by larger “hub” investments post-breakeven.

2. Drive Revenue Growth via Integrated Workspace Solutions
The workspace ecosystem includes:

• IndiQube Grow – Plug-and-play offices with amenities and bundled services

• IndiQube Bespoke – Interior design and build services for third-party spaces

• IndiQube One – Facility management and employee services

• MiQube – Technology solutions for workspace management

• IndiQube Cornerstone – Asset renovation and property management for landlords
  This integrated model supports higher average revenue per sq. ft. through value-added services.

3. Position as the Preferred Enterprise Workspace Partner
Focus is on delivering end-to-end workspace solutions tailored to enterprise needs—ranging from corporate hubs and branch offices to facility upgrades and operational automation. Emphasis is on a location-agnostic, tech-enabled platform offering flexible, smart, and sustainable workplace experiences.

4. Scale Bespoke Fit-Out Solutions for Self-Leased Offices
Leverages in-house design and operational expertise to offer fit-out-as-a-service for organizations with self-leased spaces, enabling the delivery of compliant, well-designed, and cost-effective office interiors.

5. Expand Sustainability as a Service
With 52% of Tier I office stock aged over 10 years, there is significant opportunity in asset renovation and ESG-compliant upgrades, particularly for city-center properties that require modernization for evolving workforce needs.

6. Use Technology to Broaden Client Engagement
The MiQube platform enables office space optimization, including meeting room booking, desk utilization tracking, visitor management, and employee engagement tools. This digital infrastructure supports scalability, efficiency, and a customized experience for enterprises and employees.

BUSINESS RISK FACTORS & CONCERNS

1. Revenue Concentration in Key Cities
In Fiscals 2025, 2024, and 2023, 88.84%, 91.82%, and 93.18% of revenue from operations, respectively, was generated from centers in Bengaluru, Pune, and Chennai. Any economic, political, demographic, or natural disruption in these regions may materially impact business performance.

2. Geographic Risk and Limited Diversification
Despite presence in 14 cities as of March 31, 2025, reliance on a few high-performing locations increases exposure to localized competition, oversupply, and regulatory changes. A shift in demand or government policy could require significant capital expenditure and force a change in strategic direction.

3. Sensitivity to Real Estate Market Dynamics
The business model relies heavily on leasing rather than owning properties. A decline in occupancy from 83.68% (FY23) to 80.21% (FY24) reflects market volatility. Increases in leasing costs due to property price inflation could pressure profit margins, hamper expansion, and strain capital allocation.

4. Operational Risk in Value-Added Services (VAS)
Although value-added services are a key part of the offering, achieving targeted growth and profitability remains uncertain. These services require consistent quality execution at scale, and operational lapses could adversely affect cash flows, customer satisfaction, and financial health.

Indiqube Spaces faces concentration risk from overdependence on key cities, exposure to real estate market fluctuations, and challenges in scaling value-added services. These risks may adversely impact financial performance, operations, and growth.