Coworking giant Awfis has unveiled its latest offering, ‘Elite’, a premium workspace designed to serve India’s growing demand from global capability centres (GCCs). This strategic move comes as the Delhi NCR-based startup reports robust growth in revenue and occupancy, further cementing its position in the competitive coworking and flexible office space market.

Strong Financial Performance Drives Expansion

Awfis closed the second quarter of FY 2024-25 on a high note, achieving a 40% year-on-year increase in operating revenue and a 63% YoY surge in operating EBITDA, amounting to ₹100 crore. The gains were bolstered by a one-time profit from the sale of its facility management division, ‘Awfis Care,’ alongside increased occupancy rates. As of September 2024, the company’s exit-month occupancy stood at 73%, with mature centres achieving an impressive 84%.

“We’re witnessing sustained demand for flexible workspaces, and this reinforces our confidence in the growth trajectory of Awfis,” said Amit Ramani, Chairman and Managing Director of Awfis, during the company’s recent post-earnings call. He highlighted the company’s robust design and built a business fueled by a strong order pipeline and favourable market dynamics.

Awfis has signed a service agreement to develop and manage over 1.65 lakh sq. ft. of office space for the National Stock Exchange (NSE) at Adani Inspire in Mumbai’s Bandra-Kurla Complex, marking another significant milestone.

The ‘Elite’ Edge: A Premium Offering for GCCs

The newly launched ‘Elite’ workspace aims to capture the burgeoning market of premium office spaces, driven by the rapid growth of GCCs in India. Awfis inaugurated the first Elite centre in Hyderabad and plans to roll out more locations in key cities, including Bengaluru, Delhi, and Mumbai.

Elite centres are crafted with an eye on exclusivity and innovation. These centres offer a sophisticated environment tailored for high-performance work, featuring executive suites, biophilic pods, podcast and focus rooms, wellness zones, and meeting spaces.

“Global Capability Centers are a significant market for us, and the Elite brand is our response to their unique requirements,” explained Awfis’ senior leadership. They noted that the premium workspace segment is expanding and presents an opportunity for higher revenue streams.

Positioning Elite Among Existing Offerings

Awfis’ existing offerings, such as Awfis Gold, cater to premium segments, but the company envisions Elite as a distinct, ultra-premium product. With seating capacities ranging from 700 to 1,000 seats—compared to 1,000-1,300 seats in other coworking centres—Elite spaces will come at a 40% premium over existing products.

This move aligns with Awfis’ strategy of catering to a diverse clientele, from startups and SMEs to large corporations and multinational firms. “The goal is to provide ready-to-move-in, premium office solutions that seamlessly integrate functionality and design,” added the leadership team.

Expanding Horizons: Tier-II Cities on the Radar

While scaling up in metro cities with Elite, Awfis is also broadening its presence in tier-II cities. This dual approach reflects the company’s efforts to tap into established and emerging markets, ensuring a balanced growth trajectory.

However, Ramani acknowledges the challenges in sustaining revenue momentum amid the evolving commercial real estate landscape. “The market is dynamic, and staying ahead requires continuous innovation and adaptation,” he said.

A New Era for Premium Coworking

As Awfis redefines the coworking space landscape, the Elite offering is poised to set a new benchmark in luxury and functionality for GCCs and other high-end clients. With robust financial performance, strategic expansions, and a sharp focus on innovation, Awfis is well-positioned to thrive in India’s ever-evolving commercial real estate market.