IPO-Bound IndiQube’s Loss Widens 72% To INR 341.5 Cr In FY24

IPO-bound coworking space startup IndiQube’s net loss widened 72% to INR 341.51 Cr in the financial year 2023-24 (FY24) from INR 198.10 Cr in the previous year, primarily due to a sharp increase in loss on fair valuation of financial liabilities.

However, revenue from operations surged 44% to INR 867.66 Cr during the year under review from INR 601.28 Cr in FY23. 

For the three-months period ended June 30, 2024 (Q1 FY25), its loss after tax stood at INR 42.04 Cr on an operating revenue of INR 251.30 Cr. 

In a statement, IndiQube said that its EBITDA stood at INR 263.4 Cr in FY24 and INR 153 Cr in Q1 FY25.

Founded in 2015 by Rishi Das and Meghna Agarwal, IndiQube is a managed office space provider that offers ‘office in a box’ experience to clients, encompassing workspace design, interior build out and a plethora of B2B & B2C services leveraging technology.

The company claims to manage a portfolio of 103 centres across 13 cities, covering 7.76 Mn sq ft of area under management (AUM) in built-up area with a total seating capacity of 1.72 Lakh as of June 30, 2024. 

It counts Myntra, upGrad, Zerodha, No Broker, Redbus, Juspay, Perfios, Moglix, Ninjacart, among its clients. 

As Inc42 reported, IndiQube has filed its draft red herring prospectus (DRHP) with market regulator SEBI for an initial public offering worth INR 850 Cr.

The proposed initial share sale is a combination of fresh issue of equity shares worth INR 750 Cr and an offer for sale of up to INR 100 Cr. 

Promoters and cofounders Das and Agarwal, will be divesting some shares via the OFS. 

The company plans to use the proceeds from the fresh issue to establish new centres, repay some loans and meet its working capital requirements.

IndiQube’s Revenue Drivers

The IPO-bound company primarily earns revenue from the rent it charges its clients for its coworking spaces. Workspace leasing revenue stood at INR 741.58 Cr during the year under review, up 44% from INR 515.24 Cr in FY23.

While workspace leasing remains the core driver of revenue for IndiQube, it has also strategically expanded its offerings to include value added services (VAS) such as interior design and build, facility management, food and transport services, among others. 

Revenue from VAS rose 35% to INR 92.19 Cr in FY24 from INR 68.16 Cr last fiscal year.

Where Did IndiQube Spend In FY24?

The IPO-bound coworking space provider saw its total expenses surge 51% to INR 1,252.48 Cr during the year under review from INR 829.20 Cr in FY23.

Loss On Fair Valuation Of Financial Liabilities: The coworking space provider incurred an expenditure of INR 268.95 Cr in this bracket during the year under review, more than double the INR 112.24 Cr it spent last year.

Finance Costs: IndiQube’s finance costs mainly consist of interest expense on lease liabilities, borrowings and security deposits received. Spending under this head surged 36% to INR 256 Cr in FY24 from INR 188 Cr in the previous fiscal year.

Employee Benefits Expense: IndiQube saw its employee benefits expense rise 47% to INR 63.76 Cr in the year ended March 31, 2024 from INR 43.52 Cr a year ago.

Amid rising demand for flexible workspaces and boom in revenue in the shared office market, coworking startups are making a beeline to list on bourses. While Awfis has already made its Dalal Street debut, Smartworks and DevX have also filed their draft IPO papers with SEBI.

The likes of Innov8, 91springboard, Spring House, Incuspaze and COWRKS are also planning to float an IPO soon.

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