Co-working space provider BHIVE eyes IPO at issue size of Rs 500 cr by 2025

Backed by Blume Ventures, BHIVE expanded into the Mumbai-Pune region, securing office space at Adani's tower in BKC with an investment of Rs 25 crore

Co-working space provider Bhive is eyeing an initial public offering (IPO) of about Rs 500 crore by 2025.

The Bengaluru-based firm also aims to achieve a revenue of about Rs 600 crore in the next three years. 

“We are looking to file a draft red herring prospectus (DRHP) next year for the IPO and are in talks with bankers. Through the IPO, there is no intention to raise primary capital. It is all being done to provide exit to investors,” Sheshagiri Rao Paplikar, founder and chief executive officer (CEO), Bhive Group, told Business Standard.

 

The company also aims to increase its seat capacity by 40 per cent annually over the next three years.

It also plans to launch SMReits (small and medium real estate investment trusts). “We are working on it and will build a huge portfolio,” Paplikar said.

In addition, Bhive Properties, the company’s commercial real estate arm, is launching “hard commercial real estate” at Brigade Metropolis in Bengaluru. It spans 22,940 square feet, with plans for expansion to other cities underway.

“Bhive Properties is bullish on this business and believes that in the next two years it will touch a revenue of Rs 500 crore. Additionally, Bhive aims to foster strategic partnerships in West Asia, facilitating mutual investments between India and the region,” Paplikar added.

Backed by Blume Ventures, Bhive expanded into the Mumbai-Pune region, securing office space at Adani's tower in Bandra-Kurla Complex (BKC) with an investment of Rs 25 crore.

Bhive has 26 offices spanning across 1.8 million sq. ft., nationwide.

Bhive said it is a profitable company and will touch Rs 200 crore revenue, inclusive of profit after tax (PAT), by the end of FY24.

“Our capital utilisation has been very strong.”

 

In December 2023, Bhive finalised the acquisition of Praemineo, a product-engineering firm, to bolster its expanding co-working and fintech ventures.

Currently, there are no additional acquisition strategies in consideration.

“There is no concrete plan for further acquisition. If we want to up our game in the food and beverages (F&B) sector, maybe we will go for an acquisition. If we have a lot more capital, we might look at more capabilities that we do not possess. With our present capital strength, we are looking to expand our co-working business,” Paplikar said.

As part of its strategy, Bhive seeks to invest in large scale properties with a ticket size of Rs 10-25 crore, Paplikar added.