Smartworks secures SEBI approval for its IPO, marking a key milestone in its expansion strategy. With 41 centres across 13 Indian cities and a recent entry into Singapore, the company reported ₹10.39 billion in revenue in FY24. Backed by Keppel Ltd., Smartworks plans to invest ₹2.38 billion in future growth.
Smartworks, one of India’s leading flexible workspace providers, has received approval from the Securities and Exchange Board of India (SEBI) for its planned initial public offering (IPO). The move comes as the company continues to solidify its position as a major player in the coworking industry, with a presence in 13 cities across India and a robust portfolio of 41 centres spanning 8 million square feet as of March 2024.
Growing Domestic and International Footprint
The company recently made its first international foray by leasing a 35,000 sq. ft. space in Singapore, signalling its ambition to expand beyond Indian markets. “This is a natural step for us as we aim to cater to global enterprises seeking premium, flexible workspaces,” Smartworks stated.
Since 2019, Smartworks has received strong financial backing from Singapore-based Keppel Ltd., which invested $29 million. In addition, a recent funding round raised ₹1.6 billion (approximately $20.24 million) from investors such as Keppel Ltd., Ananta Capital Ventures Fund I, Plutus Capital, and various family trusts. The funds will support the company’s plan to invest ₹2.38 billion over the next three years to develop and fit out new centres.
Strong Financial Performance
Smartworks has shown impressive growth, reporting revenues of ₹10.39 billion in FY24, a 46% year-on-year increase. The company attributes this success to its ability to adapt to the growing demand for flexible workspaces, catering to enterprises of all sizes with scalable, premium solutions. Its current portfolio includes 180,000 seats, highlighting its capacity to serve India’s evolving commercial real estate market.
IPO: A Strategic Milestone
The IPO approval marks a critical step in Smartworks’ growth strategy. While details of the IPO size and valuation have not been disclosed, the proceeds are expected to fuel its expansion plans and strengthen its financial position. With the Indian coworking sector experiencing robust growth, Smartworks’ IPO could set a benchmark for other players in the industry.
Meeting Market Demand
Smartworks’ expansion aligns with enterprises’ rising preference for flexible office solutions. As hybrid work models gain traction, companies increasingly seek cost-effective, scalable, and employee-centric office spaces. By focusing on premium facilities and customizable workspaces, Smartworks has positioned itself as a top choice for businesses navigating the future of work.
As the company prepares for its IPO, its recent financial achievements and ambitious growth plans reflect the evolving needs of the modern workforce and the growing significance of flexible workspaces in India and beyond. Smartworks’ success story is a testament to the resilience and adaptability of the coworking sector in a rapidly changing business environment.
