Bhive Workspaces plans to raise INR 800 crore through an IPO in the next fiscal year to expand its flexible office spaces beyond Bengaluru, where 95% of its portfolio is concentrated. CEO Shesh Rao Paplikar aims to secure INR 500 crore from primary and INR 300 crore from secondary markets. With key investors like Blume Ventures, Bhive seeks to double its space to 4.8 million sq. ft. by FY26, adding 3 million sq. ft. in cities like Chennai and Delhi-NCR. This move aligns with the growing demand for flexible workspaces in India's top seven cities, currently housing over 53 million sq. ft.
Bhive Workspaces is set to raise about INR 800 crore through an initial public offering (IPO) in the next fiscal year. This move comes as part of the company's strategy to expand its operations beyond its current stronghold in Bengaluru, where it has focused 95% of its portfolio. The shift highlights the growing significance of flexible office spaces in various urban centres across India.
CEO Shesh Rao Paplikar revealed that Bhive is in discussions with bankers to finalize the details for the IPO. The plan consists of raising INR 500 crore through primary market deals and INR 300 crore from secondary market transactions. The company's major stakeholders include the Bhive author group, which holds a 54% stake, along with recent investments from Blume Ventures and high-net-worth individuals. This funding will support Bhive's ambitious goal to expand its managed office space portfolio significantly.
Currently, Bhive generates over INR 168 crore in rental income and aims to enhance this by adding 3 million square feet of managed office spaces in key cities such as Chennai, Delhi-NCR, and Mumbai, in addition to Bengaluru. The company plans to nearly double its current operational space to 4.8 million square feet by FY26. This growth is expected to cater to rising demands from large enterprises and startups, which increasingly prefer flexible office environments in the post-pandemic landscape.
The flexible office market in India is growing rapidly. According to recent reports, the top seven cities in the country now have over 53 million square feet of operational flexible office stock. This reflects a 75% increase from the pre-pandemic figure of 30.3 million square feet and accommodates around 839,250 seats. As organizations adapt their working models following the pandemic, demand for flexible workspaces is anticipated to continue its upward trajectory.
Bhive is also exploring the acquisition of office properties beyond its existing leasing model. The company has set a goal to double its rental income over the next two to three years, with a target of achieving INR 700 crore by FY26. Furthermore, it intends to decrease its reliance on the Bengaluru market from 95% to 75% within two years, and further down to 50% within five years. This strategy highlights Bhive's commitment to creating a more balanced and diversified presence across multiple markets.
Industry experts highlight the change in the flexible workspace landscape, noting that companies are actively seeking adaptable office solutions. As the demand for flexible spaces continues to rise, Bhive's proactive approach to expansion and diversification places it at a competitive advantage in this growing market. JLL India projects that the supply of flexible office space in the country will double to 106 million square feet in the next five years, signalling a robust growth trend in this sector.
As Bhive Workspaces prepares for its IPO and looks to enhance its footprint across India, it is aligning itself with a transformative shift in the office space sector. The company's growth plans could not only catalyse its own success but also contribute significantly to the broader flexibility movement within India's commercial real estate market.
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