Desk House eyes $2.5B valuation in India IPO

Desk House, an Indian managed workspace supplier, is concentrating on a valuation of $2.5 billion or extra for an IPO deliberate for subsequent yr, sources aware of 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 House leases massive workplace areas, transforms them into totally serviced, tech-enabled campuses, and provides them to company purchasers as custom-made places of work, co-working areas, and managed assembly rooms. Hillhouse Capital invested $300 million in Desk House in a funding spherical in late 2022, and the startup is presently valued at about $550 million.

The corporate operates greater than 60 facilities throughout six city Indian cities, primarily serving Fortune 500 firms comparable 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 just about double this footprint inside three years by investing about $535 million. 

Desk House declined to remark.

In a latest interview with an Indian day by day, the corporate’s co-founder and president Kunal Mehra mentioned the corporate expects annual income to achieve almost $600 million by March 2027. 

Desk House’s IPO and enlargement plans come at a time of delicate uncertainty within the international versatile workspace sector. Whereas WeWork’s high-profile struggles have forged doubts on the viability of the co-working house enterprise mannequin all over the world, demand for versatile workplace areas in main Indian cities stays robust, pushed by a rising know-how sector and multinational companies searching for to scale back long-term lease commitments.

Desk House’s plans for the IPO additionally comply with the stellar public debut of Awfis, a Peak XV-backed co-working house supplier whose inventory has surged almost 70% within the 5 months since its IPO. Many startups, together with WeWork India, Indiqube and Simpliwork are additionally in varied levels of deliberations to go public. 

The Indian market has delivered extra tech IPOs this yr than the U.S. as valuation multiples method all-time highs within the South Asian market. Indian companies have raised over $9 billion by way of IPOs and FPOs this yr, whilst growth-stage startup offers stay muted.