December 1, 2024: Incuspaze, a flexible workspace player is embarking on a fresh expansion drive and accomplish this goal it aims to raise $25 million in fresh funding. The growth plan include adding another 2 million square feet of office space by December 2025 as it doubles down on expanding its market penetration in highly profitable markets such as Delhi-NCR, Pune, Bengaluru, and Hyderabad.
“We’ve seen a strong uptick in demand for premium office space, particularly from multinational corporations setting up Global Capability Centres (GCCs) in India,” said Sanjay Choudhary, Founder and CEO of Incuspaze.
Incuspaze adds 2 Million Flexi Workspace in several cities
In the past six months, the startup has added 2 million square feet across cities like Delhi-NCR, Mumbai, Chennai, Pune, Jaipur, Lucknow, and Bengaluru. Previously, Incuspaze leased 580,000 square feet in Gurugram to meet the increasing demand from corporate clients.
Incuspaze has also set sights on initial public offering in the future, with the current $25 million funding round targeted at strengthening its portfolio and scaling operations ahead of the public debut.
Incuspaze founded in 2016, operates 44 locations across 18 cities, managing a portfolio of 4 million square feet of office space. The coworking provider manages properties that combine managed offices, coworking spaces, and traditional offices across Tier I and Tier II cities.
The coworking player calls it “Space as a Service,” catering to enterprises, MSMEs, and startups. According to a Knight Frank report, India’s flexible office space market has experienced a compound annual growth rate of 29% in space absorption between 2017 and 2023, driven by evolving occupier demands.
Flexible workspaces, primarily popular amongst freelancers and startups, are now increasingly in demand by medium and large enterprises owiung to their cost-effectiveness, scalability, and adaptability to hybrid work models, the report noted.
It further suggests that the share of flexible spaces within the office market is steadily rising, with major growth observed in Tier I cities like Bengaluru, Delhi-NCR, and Pune, which collectively account for over 60% of the flex space portfolio.
