PC: Smartworks
Founded by Neetish Sarda, Smartworks works on a business model wherein it leases properties from real estate developers and then subleases these managed office spaces to enterprises. The company has its footprint across several major Indian cities, including Delhi-NCR, Kolkata, Bengaluru, Chennai, Pune, and Hyderabad. Of March 2024, Smartworks is present in 13 cities, with a portfolio of 41 centers and a total area of 8 million square feet.
This impressive growth is reflected in its financial performance. For the fiscal year 2023, Smartworks reported a sharp 97.5 percent rise in revenue from operations at Rs 711 crore against Rs 360 crore in FY22; however, this massive revenue growth did not snatch the firm out of losses, which rose by 44.29 percent to Rs 101 crore in FY23 from Rs 70 crore in FY22.
The latest round thus showcases the faith of most investors in the Smartworks business model’s ability to further expand in the future. Co-working spaces have been catching up fast as a concept, thanks to the evolving trends in work culture and flexible working spaces. Listing on stock exchanges by another such co-working firm, Awfis, further showed this was some booster to this space.
It will strategically deploy the raised capital toward enhancing market position, expanding operational capabilities, and probably entering new markets for Smartworks. Innovation and customer-centric solutions will further strengthen leadership in the sales segment for the company within the coworking space industry.
Apart from this, Smartworks has still managed a good governance structure; NS Niketan LLP, including promoter Neetish Sarda and others, still held over 45% of the company’s shares as of the last funding round. This substantial promoters’ stake ensures that interests remain aligned to long-term value creation.
The co-working space has grown increasingly competitive in recent years, but as a brand, Smartworks was always focused on exploiting new opportunities. This round will help this firm pour bucketfuls of funds into scaling operations, investing in innovative technology, and customer experience. With a strong business model supported by leadership and strategic vision, Smartworks is primed for long-term growth in the dynamic co-working industry.
Increasing interest in co-working spaces mirrors trends in the workplace where flexibility, cost efficiency, and community are starting to take the front seat. Going forward in this scenario, which caters to evolving modern enterprise needs, is Smartworks—right at the very top—with its comprehensive network of managed office spaces and customer-oriented approach.
In a nutshell, the $20 million raised as part of this funding round ingrains completely with the strong position and growth prospects for Smartworks. The company stands totally ready to utilize this capital toward propelling further growth plans, increasing the quality of its service offerings, and continuing on with this stiff journey in leadership for the co-working space sector.
