Smartworks Secures Rs 168 Crore Funding

Preeti Bali / 9:32 am / June 28, 2024

Smartworks, a leading provider of co-working space solutions in India, has secured Rs 168 crore ($20.24 million) in a fresh round of funding. This investment comes from a diverse group of investors, including Keppel, Ananta Capital Ventures Fund I, Plutus Capital, family trusts, and High Net Worth Individuals (HNIs).

Fueling Expansion and Business Operations

The newly acquired capital will be strategically deployed to support Smartworks’ growth and expansion plans. The company intends to utilize the funds for business development initiatives and to cover general corporate expenses.

Building on a Strong Foundation

This latest funding round adds to Smartworks’ existing investment capital, bringing their total funding to over $50 million. Notably, this includes a significant $25 million investment secured from Singapore-based Keppel Land in 2019.

Managed Office Solutions with a National Footprint

Smartworks operates under a managed office space model. They lease properties from real estate developers and then sublease the space to companies and enterprises seeking flexible workspace solutions. The company boasts a well-established presence across major Indian cities, including Delhi-NCR, Kolkata, Bengaluru, Chennai, Pune, and Hyderabad.

Significant Growth and Market Position

As of March 2024, Smartworks has expanded its operations to 13 Indian cities, including Bengaluru, Kolkata, Delhi NCR, Mumbai, and Pune. Their portfolio encompasses 41 centers, spanning a total of 8 million square feet.

Maintaining Control and Financial Performance

Data intelligence platform TheKredible reports that NS Niketan LLP, a partnership that includes founder Neetish Sarda, retains a controlling stake of over 45% in Smartworks, as recorded after the latest funding round. The company has also emphasized that its promoters continue to hold majority ownership.

Smartworks’ financial performance reflects growth alongside investment. Their revenue from operations surged by an impressive 97.5% in FY23, reaching Rs 711 crore compared to Rs 360 crore in FY22. However, the company also witnessed a rise in losses, with a 44.29% increase to Rs 101 crore in FY23 compared to Rs 70 crore in the previous fiscal year.

A Pioneering Industry Landscape

This funding round for Smartworks comes amidst a significant development in the co-working space industry. Recently, Awfis, another leading co-working provider, achieved a landmark listing on the stock exchange, becoming the first company in this sector to do so.

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