Smartworks, a prominent player in the co-working space industry, has secured Rs 168 crore ($20.24 million) in its latest funding round from a consortium of investors including Keppel, Ananta Capital Ventures Fund I, Plutus Capital, family trusts, and high-net-worth individuals (HNIs).
This investment round is intended to fuel Smartworks’ expansion initiatives and support its ongoing operational needs, according to a statement released by the company.
Founder Neetish Sarda maintain a controlling stake in Smartworks, collectively holding over 45% of the company following the latest funding round. This ownership structure underscores the commitment of the founding team to steer the company’s strategic direction amidst its rapid expansion.
The funding round represents a significant step in Smartworks’ growth strategy, bringing its total funds raised to over $50 million. Notably, Keppel Land, based in Singapore, had previously invested $25 million in the company back in 2019, highlighting a continued partnership between the two entities.
Smartworks differentiates itself by leasing office spaces from real estate developers and transforming them into managed office solutions for corporate clients across key Indian cities like Delhi-NCR, Kolkata, Bengaluru, Chennai, Pune, and Hyderabad. The company has significantly expanded its presence, boasting a portfolio of 41 centers spanning approximately 8 million square feet across 13 cities as of March 2024.
Despite facing financial challenges, Smartworks demonstrated strong revenue growth in FY23, with operational revenue surging by 97.5% to Rs 711 crore from Rs 360 crore in FY22. However, the company also reported an increase in losses, which climbed by 44.29% to Rs 101 crore in FY23 compared to Rs 70 crore in the previous fiscal year.
The successful funding round reflects investor confidence in Smartworks’ scalable business model and its ability to meet the evolving demand for flexible and modern office spaces. The co-working sector continues to evolve rapidly, with Smartworks and its peers playing a pivotal role in reshaping workplace dynamics and catering to the needs of diverse corporate clients.
In related developments within the industry, Awfis recently made headlines by becoming the first co-working company to list on the stock exchange, marking a significant milestone and highlighting the growing maturity of the co-working sector in India.