Table Space Goes For IPO, But Its Growth Story Has A Catch

Table Space has become the latest company to file its draft red herring prospectus (DRHP), bringing the managed workspace operator one step closer to a public listing after a delay of more than a year from its original IPO timeline. 

The Bengaluru-based startup has proposed a fresh issue of up to ₹800 Cr and an offer for sale (OFS) of up to 6.55 Cr shares by existing shareholders. The startup has also kept an option to raise up to ₹160 Cr via a pre-IPO placement, which would be adjusted against the fresh issue. 

The IPO plans were first reported in 2024, when Table Space was said to be targeting a filing by April 2025 at a valuation of around $2.5 Bn. 

That timeline was impacted by the unfortunate demise of the founder and CEO Amit Banerji in January 2025. With cofounders Karan Chopra and Kunal Mehra taking charge as co-CEOs, the company eventually converted into a public company in 2025 and appointed three independent directors, as it resumed preparations for the IPO. 

The coworking company is now approaching the market with a much larger business than it had when the IPO was first discussed.

Table Space Doubles Its Footprint, But Risks Remain 

While Table Space has been focusing on offering managed workspaces to enterprises, multinational corporations and global capability centres (GCCs) for about a decade now, the managed workspace market has evolved beyond simply leasing desks to companies.

Players such as Awfis and WeWork India operate broader flexible workspace platforms that combine multi-tenant coworking with managed and customised office spaces and register significant revenues from these offerings. 

For WeWork India, over 83% of this revenue comes broadly from their workspace-as-a-service model (private and managed offices), with traditional multi-tenant coworking desks and flexible memberships functioning alongside.

However, Table Space continues to be more heavily skewed towards enterprise-led managed workspaces, with large companies, MNCs and GCCs forming the core of its clientele. While this gives Table Space longer contracts and deeper relationships with enterprise customers, it also leaves it more exposed to client concentration as compared to a broader flexible workspace model.

Notably, Table Space’s ten largest clients contributed 35.6% of its operating revenue in FY26, compared with 32.08% in FY25, and 36.6% in FY24. The majority of these clients operate in the technology sector, leaving the startup exposed to any slowdown in technology spending or changes in workspace requirements. 

The DRHP itself flags the concentration as a risk, noting that a deterioration in relationships with key clients could affect revenue, cash flows and financial performance. 

However, Rahul Sharma, head of research at investment advisory Equity99, points out that Table Space’s focus on customised corporate workspaces, GCCs and Fortune 500 companies gives it greater access to a growing pool of enterprise demand. 

He added that while Table Space may miss some business by not focusing on individual users, enterprise workspace contracts can potentially generate larger aggregate business.

“Large enterprise contracts can provide better revenue visibility and longer-term relationships, although the trade-off is higher concentration risk,” Raghunath Capital’s managing director Sourav Choudhary said

He believes Table Space should continue building its enterprise franchise while gradually diversifying its customer base rather than chasing individual users simply to reduce concentration.

“If the company continues adding new enterprise clients and the contribution of its largest customers comes down over time, the concentration risk will become much more manageable,” Choudhary added.

For Table Space, the scale has been significant. Table Space operates 176 facilities and 11.42 Mn sq ft by FY26, growing its managed workspace area by 22% from FY24. Its lease area also rose from 5.05 Mn sq ft to 9.33 Mn sq ft during the period. 

Before And After IPO: How Table Space’s Listed Peers Fared

The scale of the other cowering players when they approached the public market provides a useful benchmark for Table Space. 

Awfis entered its IPO with 191 centres and 5.6 Mn sq ft of space, while WeWork India had 68 centres spanning around 7.67 Mn sq fr. Smartworks had built a portfolio of around 10 Mn sq ft across 48 centres. 

The post IPO performance of these companies also offers some cues. 

WeWork India, Awfis and Smartworks have since reported improving profitability, helped by higher occupancy, maturing centres, enterprise demand and operating leverage. WeWork India more than doubled its FY26 profit to ₹179 Cr, while Smartworks recorded its maiden profitable year in FY26. 

The shift suggests that the economics of mature centres can improve meaningfully as occupancy rises and fixed costs are spread across a larger revenue base. 

“Table Space cannot expect a premium merely because it operates in a high-growth segment. Investors now have enough listed companies to make meaningful comparisons,” Choudhary said. 

Table Space, however, is entering the market at a different scale. With 11.46 Mn sq ft of leasable area and ₹2,262 cr of operating revenue in FY26, it is already larger than most of its peers were around their IPOs.

The question for investors, therefore, is less about whether Tale Space can add more space and more about whether it can convert this scale into sustainable net profit and cash generation, while managing its client concentration and capital requirements. 

Financials: Revenue More Than Doubles, But Losses Remain

Table’s Space’s rapid expansion has translated into a sharp increase in its top line, although its bottom line continues to be in the red. While its operating revenue zoomed 66% YoY to ₹2,262.3 Cr in FY26, losses reduced by 74% YoY to ₹403.4 Cr. Important to highlight that the company reported a profit of ₹5.3 Cr in FY24 but swung to a loss in FY25, incurring a loss of  ₹1,554.1 Cr.

Meanwhile, normalised EBITDA rose from ₹ 108.7 Cr in FY24 to ₹202.2 Cr in FY25 and ₹453.8 Cr in FY26, taking the margin from 10% to 18.3%. Facility operating profit increased to ₹823.64 Cr in FY26, with the margin expanding to 33.24%. 

This creates an important distinction for investors: Table Space has become profitable at an operating level, but that has not yet translated into PAT profitability. 

Cash generation has improved, although the business continues to require substantial capital to expand. Operating cash flow for FY26 almost doubled to ₹146.36 Cr in FY26 from ₹75.91 Cr in FY25. At the same time, it spent ₹776.7 Cr on priority, plant and equipment and capital work in progress during FY26. 

The company’s model requires upfront spending on fit-outs and facilities before a new centre reaches mature occupancy. The company has said that it generally takes around 12 months to achieve committed occupancy of more than 85% per centre. 

IPO Proceeds Towards Debt Repayment

Debt reduction is a major part of the IPO proposition. Table Space plans to use ₹550 Cr of the proposed ₹800 Cr fresh issue to repay or pre-pay borrowings. The remaining proceeds will be used for unidentified acquisitions and general corporate purposes.

As of March 31, 2026, total borrowings stood at ₹3,309.16 Cr. This included ₹2,322 Cr of CCPS A, while borrowings from banks and financial institutions stood at ₹987.2 Cr. After adjusting for cash and certain fixed deposits, net debt stood at ₹452.2 Cr.

On the face of it, the startup’s net debt position has improved. 

However, the proposed use of IPO proceeds also raises a question about how much of the fresh capital will support future growth, as nearly 69% of the fresh proceeds raised are earmarked for debt repayment. The startup will only have the balance for acquisitions and corporate purposes, even as its business remains dependent on continued investment in new facilities.  

Choudhary believes its enterprise focus could help differentiate it from peers.

“The flex-office space has become quite competitive, so Table Space will have to differentiate itself beyond simply adding more square footage. Its focus on large enterprises, GCCs and customised managed-office solutions gives it a somewhat different positioning,” he said.

Edited By Akshit Pushkarna
Creatives: Abhyam Gusai

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