Flex office space provider International Workplace Group plans to expand to Tier 2, Tier 3 cities

The company currently has close to 90 workspaces in India and by the end of the financial year, the number is expected to touch more than 100.

London-listed flex office space provider International Workplace Group (IWG) plans to expand to Tier 2 and Tier 3 cities in India, given the increased demand for flex workplaces in these locations.

“We are looking at Mangalore, Kochi, Thiruvananthapuram, and Mysuru for immediate expansion,” Harsh Lambah, Country Manager, India, IWG told Moneycontrol.

The company currently has close to 90 workspaces in India and by the end of the financial year, the number is expected to touch more than 100.

“In total, the company plans to add about 10-12 workspaces in India by the end of FY23-24 taking the total number of workspaces to 100,” he said.

"We are expecting to have around 4,000 locations by the end of the calendar year, and we will add around 1,000 locations over the next year," he said.

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The company is also looking at launching a new brand, HQ Global Workspaces, in India by the end of the current financial year. The new brand will be a co-working space catering to sales teams or project teams in Tier II and Tier III cities.

Currently, IWG has two brands operational in India: Regus, the serviced Grade A office spaces; and Spaces, its co-working vertical for Tier I cities.

"Post-pandemic, we saw demand coming from new segments and new markets in India. We have started a growth engine through partnerships (previously known as a franchise model), where we are bringing landowners, developers or investors with an asset-like strategy to expand at a good pace," Lambah added.

"In cities like Bengaluru, gaming companies, hospitality, and consulting firms have started exploring the market. However, the major taker continues to be tech companies," Lambah said.