Mumbai, Aug 25 (PTI) Homegrown shared office space provider Smartworks plans to raise USD 35-40 million in a mix of debt and equity to fund its plans to nearly double the portfolio to 5 million sqft by March, a top company official has said.
The three-year-old Noida-based company is also eyeing a twofold increase in revenue for the fiscal to Rs 320 crore, managing director Neetish Sarda told PTI.
“With 2.8 million sqft, we are the second largest after the multinational Wework which has around 3 million of space under it portfolio.
We now plan to increase the portfolio to 5 million sqft by the end of this fiscal year for which we will be investing close to USD 35-40 million which will be mopped as equity and debt.
“Access to funds from banks and institutions like NBFCs is easy. A lot of private equity investors are also approaching us and we are evaluating them, but we cannot disclose more that at this moment,” he said.
Last year the company closed with revenue of about Rs 110 crore with a profit margin of around 10 percent.
“Our pan-India rentals on average are about Rs 10,000 a seat. We are confident of closing this fiscal with Rs 320 crore topline and profit margin of 20-30 percent,” Sarda said.
The company, which is currently present in nine cities including Delhi-NCR, Mumbai, Hyderabad, Bengaluru and Pun among others, is also planning to expand into small towns.
“Our immediate focus is consolidating in these nine cities. Then we will also enter one or two small towns but that is not going to be of significant scale…we will enter with 20,000-40,000 sqft size,” he said.
He said the company will continue to focus on enterprises or MNCs as they offer better margins.
It competes with Wework, Regus, Cowrks, Awfis, Oyo Workspace, Goodworks, Gowork, Skootr, Indiuube, Avanta, 91Springboard, Creator’s Gurukul, Gohive, Oneculture, Plus Offices and Spring House Coworking among others.
Just yesterday, Thailand-based real estate firm MQDC announced that it is entering the Indian property market by taking on lease 22,000 sq ft from realty major DLF to start its first co-working space in the national capital region. MQDC has opened its first centre– Whizdom Club–in Greater Kailash-II in south Delhi in a 22,000 sq ft area leased out from DLF and offers 400 seats.
Early this month, Co-working startup GoWork had raised $53 million in debt funding from US-based BlackRock and CLSA Capital Partner to expand its business. Prior to that, GoHive had raised ₹ 2.5 crore from investors to expand its operations. It currently has seven co-working centres in the national capital region.
In this month only, Co-working operator Plus Offices had announced that it is looking to raise up to USD 10 million for expansion abd has invested $2 million to set up two centres in Gurugram.