IndiQube plans to add 30,000 seats across key metros, foray into tier 2 cities

NARAYANAN V Chennai | Updated on September 08, 2021

Banks on back-to-office uncertainty as companies seek flexible solutions to demand for hybrid work environments

IndiQube, a Bengaluru-based workspace management and co-working solutions provider, plans to add about 30,000 seats across key metros in the country besides foraying into tier 2 cities in the next 12-18 months.

“We started expanding outside Bengaluru around 2018-19 but then the pandemic happened. Now, we are gearing up with our expansion plans. We should be able to add 20,000 seats in tier 1 cities in the next 12-18 months and add 5,000-10,000 seats in tier 2 cities,” Rishi Das, Co-founder and Chairman, IndiQube, told BusinessLine.

Started as a single property in Bengaluru in 2015, IndiQube today has 55 properties spread across 3.5 million sq ft of signed up space with a capacity of over 70,000 seats. Of this, 2.5 million sq ft with 50,000 seats are currently operational. IndiQube’s currently operates in six cities including Bengaluru (35 properties), Pune (10), Chennai (two), and one each in Hyderabad, Mumbai and Delhi.

Expansion plans

IndiQube is looking to expand its presence in about 10-15 tier 2 cities including Coimbatore, Jaipur, Ahmedabad, Kolkata, Lucknow and Indore starting with an average of 500 seats in each of these cities. The company is planning its tier 2 expansion through partnerships and acquisitions of smaller operators.

Also see: Hot India property stocks seen extending run on demand surge

IndiQube’s expansion plans come at a time when the number of fresh Covid-19 cases have drastically come down from the peak witnessed in April and May, increasing vaccine coverage, and ‘back to office’ preparation by major tech companies.

Return to office

According to media reports, IT giants like TCS, Wipro and HCL Tech have all been encouraging their employees to be fully vaccinated as they contemplate bringing them back to office in a gradual manner.

Currently, 50 percent of IndiQube’s existing clientele are from the IT sector, followed by start-ups (30-35 per cent) with manufacturing and other businesses accounting for the remaining.

A survey by JLL showed that nearly 75 per cent of surveyed employees are now willing to start visiting offices at least once a week as compared to 52 per cent in October 2020.

Hybrid work options

However, the survey also highlighted that the hybrid work environment retained its appeal with 79 per cent of employees wanting to work from home at least once a week compared to 84 per cent in October 2020.

Also see: More and more employees want to be in office at least once a week: JLL survey

Das said this back-to-office uncertainty will benefit players like IndiQube in a big way as companies seek flexible solutions to manage their business until a clarity emerges.

“What will happen is that for bigger companies, 10-20 per cent of their portfolio is going to be flex, and that will be huge number because we are talking about 600 million sq ft Grade A space in India,” Das said.

“Even if there is a 10 per cent swing, we are talking about 60-70 million sq ft and the flex industry as a whole is about 30 million sq ft. I think these factors will help us grow much faster than the overall commercial real estate industry in India,” he added.

Published on September 08, 2021

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