Incuspaze, a leading coworking provider specializing in managed flexible office spaces for corporates, is set to raise $25 million (over ₹210 crore) as part of its ambitious expansion strategy. This funding will support the company’s growth in major Indian cities ahead of its anticipated initial public offering (IPO).
Rapid Growth Since Inception
Founded in 2016, Incuspaze has established a robust presence with 44 locations across 18 cities, covering a total of 4 million square feet. With the rising demand for flexible workspaces, the company plans to open new centers in key markets such as Delhi-NCR, Pune, Bengaluru, and Hyderabad. Earlier this year, Incuspaze secured $8 million from the India Inflection Opportunity Fund and other financial institutions, further boosting its expansion plans.
Expansion Plans and IPO Preparation
“We aim to add another 2 million square feet to our portfolio by December 2025. To support this growth, we are planning a pre-IPO funding round of $25 million,” stated Sanjay Choudhary, Founder and CEO of Incuspaze. He highlighted the increasing demand for premium office spaces, particularly from multinational corporations looking to establish Global Capability Centres (GCCs) in India. The company envisions launching its IPO within the next few years, capitalizing on this growing trend.
Recent Portfolio Expansion
In the past six months, Incuspaze has expanded its portfolio by an additional 2 million square feet across major cities, including Delhi-NCR, Mumbai, Chennai, Pune, Jaipur, Lucknow, and Bengaluru. Notably, in July, the company leased approximately 5.8 lakh square feet of office space in Gurugram to cater to the growing corporate demand.
Flexible Workspace Market Outlook
According to real estate consultancy Vestian, flexible office operators in India managed 67 million square feet of prime office space as of June 2023, with projections indicating this figure will surpass 100 million square feet by the end of 2026. This surge is driven by increased demand from large corporations seeking flexibility and cost efficiency.
“Flexible office space operators in India have rapidly scaled to meet the needs of large conglomerates. In the past year alone, they have added 1.84 lakh seats, bringing the total to nearly 1 million seats by the first half of 2024,” noted Vestian CEO Shrinivas Rao.
Future Prospects
The flexible workspace sector in India has undergone a significant transformation post-pandemic, with demand shifting from startups and SMEs to large enterprises. Incuspaze’s strategic expansion and upcoming IPO position it well to capitalize on this evolving market, offering state-of-the-art office solutions tailored to modern corporate needs.
This move underscores Incuspaze’s commitment to becoming a leading player in India’s dynamic coworking industry, fostering innovation and growth in the flexible office space segment.
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