Incuspaze Targets $25 Million in Funding to Expand Coworking Spaces Across India
- ByStartupStory | November 29, 2024
Incuspaze, a leading coworking space operator, is targeting $25 million in fresh funding to accelerate its growth and expand its footprint across India’s major business hubs. The company plans to add another 2 million square feet of office space by December 2025, focusing on high-demand markets such as Delhi-NCR, Pune, Bengaluru, and Hyderabad.
Sanjay Choudhary, Founder and CEO of Incuspaze, shared his insights on the growing demand for office spaces: “We’ve seen a strong uptick in demand for premium office space, particularly from multinational corporations setting up Global Capability Centres (GCCs) in India.”
The company has already expanded its portfolio significantly in the past six months, adding 2 million square feet of office space in cities including Delhi-NCR, Mumbai, Chennai, Pune, Jaipur, Lucknow, and Bengaluru. Earlier this year, Incuspaze leased 580,000 square feet in Gurugram to cater to the rising demand from corporate clients.
Founded in 2016, Incuspaze currently operates 44 locations across 18 cities, managing a portfolio of 4 million square feet of office space. The company offers a mix of managed offices, coworking spaces, and traditional office settings, addressing the needs of enterprises, MSMEs, and startups. The company has dubbed its offerings “Space as a Service,” providing flexibility and scalability in an evolving workspace landscape.
In line with its expansion plans, Incuspaze is also preparing for a potential initial public offering (IPO) in the coming years. The $25 million funding round will help the company strengthen its portfolio and scale operations in anticipation of the public debut.
The rise of flexible workspaces in India has been driven by changing occupier demands. According to a report by Knight Frank, India’s flexible office space market has seen a compound annual growth rate (CAGR) of 29% in space absorption between 2017 and 2023. Flexible spaces, which were initially popular among freelancers and startups, are now increasingly being adopted by medium and large enterprises due to their cost-effectiveness, scalability, and adaptability to hybrid work models.
The report also highlighted that the share of flexible spaces within the office market is steadily rising, with major growth seen in Tier I cities such as Bengaluru, Delhi-NCR, and Pune. Together, these cities account for over 60% of the total flexible office space portfolio in India.
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