Smartworks, which provides managed office space, plans to raise $70-90 million in equity funds this fiscal year for future growth to tap the rising demand for flexible workspace.
In an interview with PTI, Smartworks founder Neetish Sarda said the company's revenue is set to cross Rs 700 crore last fiscal from Rs 394 crore in the previous year. The company has already achieved an annual run rate of Rs 1,000 crore in revenue, he highlighted.
"Business has been growing very well. We have increased our portfolio by more than four million square feet during 2022-23 fiscal," he told PTI.
Smartworks, which was founded in April 2016 by Sarda and Harsh Binani, currently has a portfolio of 8-8.5 million square feet, of which 7 million square feet is operational, in 12 cities. "We are targeting to reach 12-13 million square feet portfolio by March 2024 and we are fully capitalized to achieve this growth," Sarda said.
For the next phase of growth, he said the company plans to raise funds this fiscal year itself.
"We might raise equity capital anywhere between $70 million and $90 million. We need growth capital for FY'25 and beyond," he said, adding that the company would start the process in the second half of this fiscal.
In 2019, Smartworks raised $25 million from Singapore's Keppel Land Ltd to fund its expansion plan.
Smartworks caters to around 500 organisations across Fortune 500 companies, large enterprises, small and medium enterprises (SMEs) and established unicorns or start-ups.
Co-working operators, which include those providing managed office space, take on lease spaces from real estate developers and then further sub-lease them to enterprises as well as individuals. Smartworks takes the entire office building on lease and then provides office space to large corporates on a per-desk basis.
The company has a presence in Delhi, Gurugram, Noida, Kolkata, Bengaluru, Jaipur, Indore, Mumbai, Hyderabad, Chennai, Pune and Ahmedabad. It plans to expand operations in more cities including Kochi and Coimbatore.