Table Space, a company in India that provides managed workspaces, is aiming for a valuation of $2.5 billion or more in an upcoming IPO, according to sources familiar with the situation as reported by TechCrunch. The startup, headquartered in Bengaluru, has enlisted Axis as a bookrunner for the IPO.
Established in 2017, Table Space specializes in leasing large office spaces and converting them into fully serviced, technology-enabled campuses. These spaces are then offered to corporate clients as customized offices, co-working spaces, and managed meeting rooms. In a funding round in late 2022, Hillhouse Capital invested $300 million in Table Space, resulting in a current valuation of approximately $550 million.
With operations in more than 60 centers across six major Indian cities, Table Space primarily caters to Fortune 500 companies such as Apple, Google, Mastercard, PayPal, AMD, Ericsson, and Shell. The startup has expanded its real estate holdings to over 9.5 million square feet across key Indian cities and plans to nearly double this footprint in the next three years through an investment of around $535 million.
Despite declining to provide a comment, Table Space’s co-founder and president, Kunal Mehra, stated in a recent interview with an Indian publication that the company anticipates annual revenue to reach close to $600 million by March 2027.
The decision to pursue an IPO and expand operations comes amidst uncertainty in the global flexible workspace industry. While WeWork’s challenges have raised questions about the sustainability of the co-working model worldwide, the demand for flexible office spaces in major Indian cities remains robust. This demand is being fueled by the flourishing technology sector and multinational corporations looking to minimize long-term lease commitments.
Table Space’s IPO aspirations follow the successful stock market debut of Awfis, another co-working space provider backed by Peak XV. Since its IPO, Awfis’ stock has climbed by almost 70% in just five months. Several other startups like WeWork India, Indiqube, and Simpliwork are also contemplating going public.
In India, the tech IPO market has outperformed the United States this year, with valuation multiples reaching record levels in the South Asian market. Indian companies have raised over $9 billion through IPOs and FPOs in 2023, despite a slowdown in growth-stage startup deals.
The Indian IPO landscape continues to evolve, with Table Space positioning itself for significant growth and value creation in the coming years. As the company prepares for its public offering, investors and industry experts will be closely watching to see how it navigates the dynamic market conditions and capitalizes on the growing demand for flexible workspaces in India.
