International Workplace Group (IWG), the global hybrid workspace powerhouse that owns major brands like Regus and Spaces, has set its sights on becoming India’s third-largest co-working space provider within the next three to five years. Backed by strong growth in both its Indian and global operations, IWG plans to add 300 more centres across India, significantly expanding its footprint from the current 105 operational centres.

This move reflects the growing demand for flexible office solutions in India, driven by economic uncertainties, evolving work cultures, and a preference for asset-light business models. IWG’s Regional CEO for Asia-Pacific and Middle East & Africa, Mr. Marc Descrozaille, highlighted India as one of the company’s top 15 global markets and projected it could rise to the top 3 in terms of number of centres.

India: A Strategic Growth Market for IWG

Currently operating 105 centres in India, IWG plans to open 40 more centres in 2024 alone. But the broader goal is far more ambitious — adding a total of 300 centres across India over the next few years.

According to Marc Descrozaille, “India is already among the top 15 countries for IWG in terms of the number of centres. But considering the population size, startup ecosystem, and demand for flexible workspaces, India can quickly move into the top 3 globally.”

The Asia-Pacific region, led by India, is IWG’s fastest-growing market in terms of the number of centres. This growth is a clear indicator of shifting workplace preferences among Indian businesses and multinationals operating in the region.

Global Growth Momentum Fuels India Expansion

In 2024, IWG achieved record global network growth, signing 899 new centres and opening 624 new locations worldwide. This expansion has been pivotal in the company’s return to profitability, with EBITDA reaching ₹4,786 crore (US$ 557 million).

Notably, the company also made significant progress on the financial front by reducing its net debt to ₹6,118 crore (US$ 712 million), down from ₹6,659 crore (US$ 775 million). These strong financials provide the backing needed for IWG to scale in India, where competition is rising rapidly.

IWG currently operates over 4,000 workspaces across 120 countries, making it one of the largest players in the global co-working space.

Why Flexible Workspaces Are Thriving

One of the key drivers of IWG’s expansion strategy is the growing corporate shift towards flexible office models. As Mr. Descrozaille explains, economic uncertainty compels businesses to focus on their core competencies such as manufacturing, IT, trading, or marketing, rather than investing in long-term office leases or real estate.

“Office space is not a core business for most companies,” he said. “That’s where co-working and flexible workspaces come in as a smart, cost-effective alternative.”

This shift is accelerated by the remote work trend, hybrid work models, and the need for on-demand, scalable office solutions that allow companies to expand or contract quickly based on business needs.

India’s Competitive Co-Working Landscape

India’s co-working market is already home to major players like:

• WeWork India

• Awfis

• Smartworks

• IndiQube

• 91springboard

With over 1,500 active co-working spaces across major cities like Bengaluru, Mumbai, Delhi-NCR, Pune, and Hyderabad, the sector is witnessing explosive growth, especially post-pandemic.

IWG’s goal to be the third-largest player indicates its intent to aggressively challenge top incumbents by offering premium infrastructure, flexible leases, and global-standard services.

Franchise-Led Growth Model in India

A large part of IWG’s Indian growth strategy is built around a franchise-based model, where local real estate developers and investors partner with IWG to launch new centres under the Regus or Spaces brand.

This model enables:

• Faster expansion with lower capital requirements

• Wider geographic reach beyond metros

• Consistency in global quality and service delivery

The company is currently in talks with multiple local partners across tier-1 and tier-2 cities, looking to tap into underserved business hubs and industrial clusters.

Focus on Enterprise Clients and Startups

While many co-working companies focus heavily on startups and freelancers, IWG’s positioning is slightly different. It caters to a wider spectrum, including:

• Large enterprises looking for flexible satellite offices

• Startups scaling rapidly across multiple cities

• SMEs needing plug-and-play infrastructure

• Multinational companies entering India

This diversified client base helps IWG maintain steady occupancy rates and higher revenues per centre compared to smaller players in the market.

Sustainability and Digital Innovation

IWG is also investing in sustainable infrastructure and technology upgrades across its centres in India. With rising concerns around carbon footprints and energy efficiency, the company is pushing for:

• Energy-efficient lighting and HVAC systems

• Use of recycled and low-emission materials

• Smart workspace management systems

• Touchless access, IoT integration, and digital booking platforms

These innovations are aimed at enhancing the user experience while reducing operating costs, making IWG centres more attractive to both environmentally conscious and tech-driven clients.

The Road Ahead for IWG in India

With over 4,000 global centres, a profitable business model, and a fast-growing Indian market, IWG is well-positioned to disrupt the co-working space in India. The next three to five years will be critical as it competes for market share, builds strategic alliances, and expands into new cities and sectors.

In summary, IWG’s India play includes:

• Adding 300 new centres over the next 3–5 years

• Expanding to tier-2 and tier-3 cities

• Targeting enterprise clients and fast-growing startups

• Leveraging franchise partnerships for rapid growth

• Enhancing digital and sustainable infrastructure

With economic uncertainty pushing companies toward asset-light models, and hybrid work becoming the norm, India’s co-working sector is poised for exponential growth — and IWG is gearing up to lead that change.

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