IndiQube’s IPO Litmus Test: Profitability Concerns In Crowded Coworking Market

Just days away from becoming the third publicly-listed real estate tech company, Bengaluru-based IndiQube is betting on an asset-light model to stand out from key rivals —  listed players Awfis and Smartworks as well as another IPO-bound company WeWork India.

All four companies are in the coworking space, but there are fundamental differences in their business model, which is relevant to understanding their growth trajectory and unit economics. 

In fact, all four have vastly different business and revenue models, which has added to the intrigue in the listed coworking companies segment. 

Incidentally, IndiQube, Awfis and Smartworks were all founded in the same year, which perhaps necessitated these differentiated models in the first place.

The Diverse Coworking Models

While WeWork India’s business model is more vertically integrated than the rest, IndiQube’s asset-light model is seen as a long-term advantage. 

IndiQube focusses on long-term leases (often 10 years with a 3-year lock-in), unlike Awfis, which has a managed coworking space model in partnership with developers, or Smartworks, which focuses on leasing large properties and transforming them into managed campuses.

Delving deeper into its asset-light model reveals that IndiQube has adopted an “office in a box” strategy with an emphasis on customisable solutions. 

The company primarily provides workspaces to businesses within its leased properties, customising their workspaces as per the clients’ requirements. These requirements can range from customisable workspace design, interior fit-outs, and a suite of B2B and B2C services, such as facilities management, food and transport. 

The above customisable service model is branded ‘IndiQube Bespoke’, while ‘IndiQube One’ is a more comprehensive solution ranging from housekeeping, facilities management, asset maintenance and plantation to catering, and transportation services.

However, this model requires short-term partnerships with developers and commercial real estate companies, which limits IndiQube’s target base to a certain extent as well as its capacity.

This is highlighted by the fact that most of IndiQube’s properties are based in its home city of Bengaluru, where the company has 15 centres. The concentration is not so prominent for  Awfis which operates in 18 cities compared to IndiQube’s 15, and has the higher number of active seats.

Smartworks also has an edge over IndiQube in terms of seats, since it often operates larger managed campuses, leading to a higher seat count. The higher number of seats allow companies to capture higher market share and benefit from economies of scale, as we saw in our analysis of WeWork India’s business model.

Can IndiQube Break Into Investor Portfolios?

Business model nuances are critical for companies to convey their competitive edge to retail and institutional investors.  

Awfis, having been the first to go public in May 2024 and turning profitable in FY25, has garnered a lot of investor confidence. Its debt-free state is a significant comfort factor for investors compared to IndiQube’s higher debt-to-equity ratio.

Smartworks also successfully completed its IPO in July 2025, but its listing has been marred by some legal challenges. Given IndiQube’s IPO follows closely on the heels of Smartworks, we can see some competition between these stocks in the market. 

Typically, public markets sentiment often favours companies that demonstrate a clear path to profitability or are already profitable. 

While IndiQube focuses on managed office solutions for enterprises and SMEs, its emphasis on “full-building formats” and customised solutions might require more capital expenditure upfront compared to some of Awfis’s more asset-light models. 

IndiQube managed to trim its net loss for FY25 by about 60% to INR 139 Cr from INR 341 Cr in FY24. Revenue stood at INR 1,059 Cr, up 28% from the previous year, but more vitally, IndiQube showed control over its expenses, which rose a mere 0.6% to INR 1,260 Cr.

Smartworks’ net loss widened 26% YoY in FY25 against revenue of INR 1,374 Cr, but at INR 63 Cr this is still well under IndiQube’s losses. Meanwhile, Awfis turned profitable in the fiscal, reporting a net profit of INR 68 Cr (revenue INR 1,208 Cr) as against a loss of INR 18 Cr in the previous fiscal year.. 

So even if the asset light model has some advantages, IndiQube is not better off in terms of top line growth or profitability. With WeWork India set to join the public markets, IndiQube is soon likely to be the fourth-biggest player in the coworking space, with the worst profit margins of the lot. 

As such, IndiQube will have its work cut-out when it lists. Capital expenditure towards establishment of new centres will see an investment of more than INR 462 Cr, but INR 93 Cr has been earmarked for debt repayments. That would be a big dent into the company’s current cost structures and could bring IndiQube on par with profitable competition in the medium term.

(Edited by: Vinaykumar Rai & Nikhil Subramaniam)