Table Space raises $300 million in funding from Hill House to expand its operations

By Sobia Khan

The Economic Times of India

Flexible office operator Table Space has raised around $300 million from Hill House Capital, a global private equity fund, to expand its operations. The investment is expected to be funded in two tranches.

“Table Space has signed some large clients recently and has been looking for funding to expand its business. The fresh funding will help them expand at a faster pace,” said multiple people aware of this transaction.

Table Space is one of the fastest-growing managed workspace providers for enterprises in India and plans to expand its footprint from the present five million square feet to eight million square feet by December 2023. Table Space did not comment on the deal. Sources say that the deal was closed in October.

“Corporates are increasingly seeing offices as both a capital-driven expenditure and a value-driven operating expense. The events of the past two years have accelerated the journey for enterprises, and many flex operators have expanded aggressively to support them in this transition,” said one of the people quoted above.

EY was the advisor on the deal. A questionnaire mailed to the firm remained unanswered.

Table Space has leased more than 1.2 million square feet of Grade-A commercial space in recent months in projects such as 1 Shobha in Bengaluru, Gigaplex in Navi Mumbai, DLF Cyber City Building 10 in Gurugram, BPTP Capital City in Noida, and Panchshil Business Park in Pune.

Currently, Table Space operates and manages over 5 million square feet, which can accommodate 45,000 to 50,000 people.

The company operates across cities like Delhi-NCR, Bengaluru, Hyderabad, Mumbai, Pune, and Chennai and caters to top corporations like AMD, Fujitsu, and Microsoft, amongst others.

Hill House Capital is an investment fund that specialises in private equity and venture capital investments. The firm focuses on buyouts and growth investments in the Asia region as well as selective investments in North America and Europe.

As of July 2021, Hill House was managing $73.3 billion in assets, making it one of the largest private equity funds in Asia. It just finished raising money for its fifth flagship private equity fund.

Post-Covid, with the new hybrid model of working becoming more and more popular among mid- to large-sized enterprises, the demand for outsourced offices has risen significantly in the past two years, and is continuing to thrive.

The share of the co-working sector in total transactions increased to 23% in Q3 2022 from 6% in Q3 2021, recording the maximum increase across all sectors.

The sector continued to find favour during the period, and volumes transacted by this sector expanded nearly five-fold. Co-working players were particularly active in Bengaluru, as the city accounted for a substantial 52% of the total space transacted by the sector, according to Knight Frank.