Hong Kong-based co-working firm The Executive Centre (TEC) has posted 31 per cent growth in India revenue to Rs 475 crore during the last calendar year driven mainly by expansion amid rising demand for flexible workspace. TEC, one of the leading premium workspace providers with a presence in 15 countries, has 40 co-working centres in India, comprising around 13,000 workstations and 12 lakh square feet of area.
"Our revenue from India business stood at Rs 475 crore in 2023, a phenomenal 31 per cent growth from the preceding year," said Manish Khedia, Managing Director for South India, West India and Sri Lanka, TEC.
The EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) of India's business grew by around 35 percent to Rs 159 crore last year. India's market contributed around 18 percent to global revenue and 26 percent to global adjusted EBITDA.
Khedia attributed the growth in revenue to an expansion of its portfolio across major cities to tap the rise in demand for flexible workspaces from large corporates post-COVID pandemic.
"We opened 8 new centres last year," he highlighted. TEC India has a presence in seven major cities-- Delhi, Gurugram, Bengaluru, Mumbai, Pune, Hyderabad and Chennai.
Khedia noted that the average occupancy stood at 92 per cent, reflecting strong customer satisfaction and the growing trend towards flexible workspaces.
Flexible workspace operators are taking on lease office spaces from real estate developers and property owners and they are a major contributor to the overall office leasing transactions, he noted. Globally, TEC has achieved a record revenue of USD 315 million (Rs 2,603 crore) representing an 11.2 per cent annual growth.
TEC Global adjusted EBITDA increased 12 per cent YoY to USD 56 million. Commenting on its financial result, TEC Founder and CEO Paul Salnikow, said, "Our unwavering commitment to service excellence and our ability to anticipate market trends have allowed us to not only meet but exceed our goals amidst a rapidly changing global business environment."
India continues to be one of the biggest and fastest-growing markets, he said, adding that the company would continue on this growth trajectory, fostering innovation and expanding its presence strategically to support corporates in their growth journey.
"Our aim is to enhance our India presence further by offering premium flexible workspaces equipped with state-of-the-art amenities, personalised services, at grade-A locations, to remain at the forefront of India's dynamic workspace landscape," Salnikow said. TEC opened its doors in Hong Kong in 1994 and currently has more than 200 centres in 34 cities and 15 markets.
