Bhive Workspaces Plans INR 800 Crore IPO for FY26, Targets Expansion Beyond Bengaluru

Bengaluru:

Bhive Workspaces, a leading provider of managed office spaces, is preparing for an initial public offering (IPO) worth approximately ₹800 crore in the next financial year, according to a senior executive at the company. As part of its strategy leading up to the IPO, Bhive aims to diversify its portfolio by reducing its heavy reliance on the Bengaluru market, which currently constitutes 95% of its operations.

Strategic IPO Plans

Bhive Workspaces is reportedly working with bankers to finalize the details of the IPO. The company plans to raise ₹500 crore through primary sales and ₹300 crore through secondary sales. The founder group currently holds a 54% majority stake, with venture capital firm Blume Ventures owning 16%, high-net-worth individuals, family offices, and friends holding 20%, and the remaining 10% owned by employees through stock options.

Expansion and Growth Objectives

Bhive is experiencing consistent growth in the managed office space segment and plans to expand significantly. The company aims to operate approximately 4.8 million square feet of managed office space by FY26, aligning with its IPO timeline. Currently, Bhive earns more than ₹168 crore in annual rental income, with plans to increase its managed office spaces by 3 million square feet in key markets such as Bengaluru, Chennai, Delhi-NCR, and Mumbai.

Key Figures and Projections:

• Current Rental Income: ₹168 crore annually
• Target Rental Income by FY26: ₹700 crore
• Current Operational Desks: 28,000
• Target Desks by FY26: 60,000 totaling 4.8 million sq ft

Market Diversification and Future Goals

Bhive is also looking to reduce its exposure to the Bengaluru market, aiming to lower its presence from 95% to 75% within the next two years, and further down to 50% within five years. The company is considering acquiring office assets in addition to leasing them to support this diversification.

Flexible Office Space Market Growth

India's flexible office space market is booming, driven by rising demand from large enterprises and startups, especially in the post-pandemic era.

Operational flexible office stock in the top seven cities has surpassed 53 million square feet, a 75% increase from the pre-pandemic level of approximately 30.3 million square feet, accommodating around 839,250 seats with an overall office stock penetration level of about 4.7%.