Desk Area, an Indian managed workspace supplier, is focusing on a valuation of $2.5 billion or extra for an IPO deliberate for subsequent 12 months, sources conversant in the matter instructed TechCrunch.
The Bengaluru-headquartered startup has employed Axis Securities as a bookrunner for the IPO, the sources mentioned.
Based in 2017, Desk Area leases massive workplace areas, transforms them into totally serviced, tech-enabled campuses, and provides them to company purchasers as custom-made workplaces, co-working areas, and managed assembly rooms. Hillhouse Capital invested $300 million in Desk Area in a funding spherical in late 2022, and the startup is at the moment valued at about $550 million.
The corporate operates greater than 60 facilities throughout six city Indian cities, primarily serving Fortune 500 firms similar to Apple, Google, Mastercard, PayPal, AMD, Ericsson and Shell. The startup has expanded its actual property portfolio to over 9.5 million sq. ft throughout main Indian cities, and goals to almost double this footprint inside three years by investing about $535 million.
Desk Area declined to remark.
In a current interview with an Indian every day, the corporate’s co-founder and president Kunal Mehra mentioned the corporate expects annual income to succeed in practically $600 million by March 2027.
Desk Area’s IPO and enlargement plans come at a time of gentle uncertainty within the world versatile workspace sector. Whereas WeWork’s high-profile struggles have forged doubts on the viability of the co-working area enterprise mannequin all over the world, demand for versatile workplace areas in main Indian cities stays robust, pushed by a rising expertise sector and multinational firms searching for to scale back long-term lease commitments.
Desk Area’s plans for the IPO additionally comply with the stellar public debut of Awfis, a Peak XV-backed co-working area supplier whose inventory has surged practically 70% within the 5 months since its IPO. Many startups, together with WeWork India, Indiqube and Simpliwork are additionally in numerous phases of deliberations to go public.
The Indian market has delivered extra tech IPOs this 12 months than the U.S. as valuation multiples strategy all-time highs within the South Asian market. Indian corporations have raised over $9 billion through IPOs and FPOs this 12 months, whilst growth-stage startup offers stay muted.
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