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Exclusive: Smartworks converts into public company

EntrackrEntrackr · 1y ago
Exclusive: Smartworks converts into public company
Medial

Co-working space solutions provider Smartworks has converted itself into a public company. This marks the company’s concrete step towards its planned initial public offering (IPO). The board at Smartworks has approved the resolution to change the company’s status from private to public. Its name has now changed from Smartworks Coworking Spaces Private Limited to Smartworks Coworking Spaces Limited. The development comes on the heels of Smartworks’s $20 million funding round from Keppel, Ananta Capital Ventures Fund I, and others. Smartworks provides managed office spaces by leasing properties from real estate developers and subsequently subleasing them to enterprises or companies. The company has a presence across Delhi-NCR, Kolkata, Bengaluru, Chennai, Pune, Hyderabad, and others. As of March 2024, Smartworks has a presence in as many as 13 cities including Bengaluru, Kolkata, Delhi NCR, Mumbai, and Pune, and a portfolio of 41 centers spanning 8 million square feet. To date, the co-working space firm has raised over $50 million, including a $25 million raise from the Singapore-based Keppel Land in 2019. As per startup data intelligence platform TheKredible, NS Niketan LLP, which includes founder Neetish Sarda, among others, controls more than 45% stake in the company as of the last funding round. Smartworks demonstrated robust financial growth, with its scale nearly doubling to Rs 744 crore in FY23. However, like many growth-stage companies, its losses also rose by 44% to Rs 101 crore during the same period. The company is yet to file its annual results for FY24. In the co-working space, Awfis became the first Indian startup to get listed on the stock exchange. The Peak XV-backed firm was oversubscribed by more than 100x on the final day of bidding.

Smartworks crosses Rs 700 Cr revenue in FY23; losses up 44%

EntrackrEntrackr · 1y ago
Smartworks crosses Rs 700 Cr revenue in FY23; losses up 44%
Medial

Co-working platform Smartworks has been demonstrating strong growth in the last two fiscal years — its scale grew two-fold to cross Rs 710 crore in revenue in the fiscal year ending March 2023. However, the company’s losses also crossed the Rs 100 crore mark. Smartworks’ revenue from operations surged 97.5% to Rs 711 crore in FY23 from Rs 360 crore in FY22, its consolidated financial statements sourced from the Registrar of Companies (RoC) show. Smartworks provides managed office spaces by leasing properties from real estate developers and subsequently subleasing them to enterprises or companies. The company has a presence across Delhi-NCR, Kolkata, Bengaluru, Chennai, Pune, Hyderabad, and others. Revenue from lease rental accounted for 97% of the total operating revenue which increased 97.4% to Rs 687 crore crore in FY23. The rest of the collections came from allied services. On the expense side, the cost of depreciation and amortization turned out to be the largest cost center accounting for 40.5% of the overall expenses. This cost surged by 67.9% to Rs 356 crore in FY23. Its employee benefits, finance, repairs, electricity, safety, custodial fees, and other overheads catalyzed the firm’s overall expenditure by 80.3% to Rs 880 crore in FY23 from Rs 488 crore in FY22. Head to TheKredible for the detailed expense breakup. Expense Breakdown Total ₹ 488 Cr https://thekredible.com/company/smartworks/financials View Full Data To access complete data, visithttps://thekredible.com/company/smartworks/financials Total ₹ 880 Cr https://thekredible.com/company/smartworks/financials View Full Data To access complete data, visithttps://thekredible.com/company/smartworks/financials Employee benefit Employee benefit Finance costs Finance costs Depreciation and amortisation Depreciation and amortisation Repairs to building Repairs to building Electricity Electricity Safety security Safety security Custodial fees Custodial fees Others To check complete Expense Breakdown visit thekredible.com View full data The increase of 80% in overall expenses resulted in a 44.29% surge in losses which reached Rs 101 crore in FY23 as compared to Rs 70 crore in FY22. On a unit level, it spent Rs 1.24 to earn a rupee in FY23. Gurugram-based Smartworks has raised over $50 million to date including its $25 million Series A round from the Singapore-based Keppel Land. The company is also reportedly in talks to raise $70-90 million. With its focus on managed office spaces besides co-working, Smartworks has sought to serve a larger segment of the market, particularly larger firms that are not so enamored with a co-working option. However, as evident, that can drive up costs a lot more, leaving the firm to travel an extended runway to profitability. With strong revenue momentum and a commercial market that is in very healthy condition, it does look like the firm will be in the black soon, and seeking newer avenues and markets for growth.

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