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Thinking About Investing in Smartworks IPO? Read This First
Smartworks Coworking Spaces is a pan-India company providing flexible office space solutions. It was founded in April 2016 by Neetish Sarda and Harsh Binani. Initially, it operated in 9 major cities; by 2019, its footprint had expanded to 2.3 million sq. ft. across 23 coworking centers. Within just three years, the company began showing profit at a company-wide level.
Even during the post-COVID period, Smartworks continued to grow rapidly. As of March 2024, Smartworks had 41 centers in 13 cities, offering over 180,000 seating spaces across approximately 8 million sq. ft. By March 2025, its footprint expanded further to 50 centers in 15 cities. Smartworks provides customized office spaces for large enterprises; its clientele includes around 550 organizations, including global companies like Google, Accenture, Persistent Systems, and Samsung.
Since 2019, Singapore-based Keppel Land and other investors have made substantial investments in the company – Keppel has invested $29 million (approximately ₹220 crore) to date. In 2024, Smartworks raised ₹168 crore in capital and is acquiring ₹238 crore more for future expansion.
Smartworks Coworking Spaces IPO Details: Dates, Price Band & Objectives
| Details | Info |
|---|---|
| IPO Opening Date | July 10, 2025 |
| Closing Date | July 14, 2025 |
| Price Band | ₹387 – ₹407 per share |
| Lot Size | 36 shares |
| Employee Discount | ₹37 per share |
| Issue Size | ₹582 crore (Fresh) + OFS |
| Reservations | QIB – 50%, NII – 15%, Retail – 35% |
The IPO of Smartworks Coworking Spaces will open on July 10, 2025, and close on July 14, 2025. The price band for the IPO has been set at ₹387–407 per share. The company aims to raise ₹582 crore through fresh issue of shares and is offering 33.79 lakh shares for sale from promoters.
Under the employee reservation segment, interested employees will receive a discount of ₹37 per share (allowing them to apply at ₹370 per share). 50% of the total funds are reserved for QIBs (Qualified Institutional Buyers), 15% for NIIs (Non-Institutional Investors), and 35% for retail investors. The IPO will be conducted through the book-building process, with a minimum retail investment lot of 36 shares.
The funds raised through the IPO will be used as follows: around ₹226 crore will be allocated for building and fitting out new centers, and ₹114 crore will be used to repay high-interest loans; the remaining funds will be used for general corporate purposes.
Financial Performance: Rising Revenue, Growing Losses
For the financial year 2024–25 (April 2024–March 2025), Smartworks recorded a revenue of ₹1,374.05 crore, which is 32% higher than the previous year’s ₹1,039.36 crore. However, due to increased expenses, the net loss rose to ₹63.17 crore compared to a loss of ₹49.95 crore in the previous year.
The company’s business model is based on leasing large office spaces from property owners and subleasing them to companies. These office spaces are equipped with amenities like membership rooms, conference halls, cafeterias, and fitness rooms. Smartworks transforms vacant, large properties into technologically advanced office spaces.
From a financial perspective, the company requires heavy capital expenditure and constant funding. It has reported losses for several quarters and has yet to achieve consistent profitability. With rising revenue and losses, its expenses are also considerable. As a result, if expenses are not reduced or demand drops, the company’s financial condition may be adversely affected.
Competitor Comparison: How Does Smartworks Stack Up?
Peers of Smartworks include WeWork India and Awfis. WeWork India, the Indian arm of the global WeWork brand, has consistently operated with high turnover. In FY2023-24, WeWork India reported a revenue of ₹1,665 crore (a 26.7% increase), but its net loss was ₹135.77 crore.
On the other hand, Awfis Space Solutions, considered one of the earliest coworking firms in India, recorded around ₹634 crore in turnover with a loss of ₹19 crore in the first nine months of 2024. Awfis recently listed on the stock exchange, and its share price has seen a strong post-IPO performance. Although Smartworks has a smaller market share and revenue compared to leading competitors, it focuses on large corporate clients.
| Company | Revenue (FY24) | Net Loss | Market Position |
|---|---|---|---|
| Smartworks | ₹1,374 Cr | ₹63 Cr | Focused on corporates |
| WeWork India | ₹1,665 Cr | ₹135 Cr | Premium brand value |
| Awfis | ₹634 Cr (9M) | ₹19 Cr | Recently listed, SME |
Market Opportunity: Can Flexible Offices Fuel Growth?
The flexible workspace sector is rapidly growing in India. According to reports from the finance sector, by the end of 2023, India had approximately 62–64 million sq. ft. of flexible office space, and this figure is expected to reach 116–118 million sq. ft. by 2027, representing an annual growth of around 17%. India currently has over 440 flexible workspace operators, and surveys show that the top 10 companies occupy around 60% of the market; these include major players like Smartworks, WeWork India, Awfis, Table Space, and Indiqube.
In the current landscape, corporations are turning to flexible office solutions to reduce capital expenditure and support hybrid work models for employees. In this trend, experienced and technology-based platforms like Smartworks can play a vital role. The company’s long-term goal is to expand by 3–4 million sq. ft. annually, which would meet rising demand. Additionally, its network of over 550 large clients and presence in major Indian cities are its key strengths.
Risks to Consider Before You Invest
However, investors should also consider the associated risks. Smartworks has not shown actual profits to date and operates with high capital expenditures. Its revenue is heavily concentrated in select cities (such as Pune, Hyderabad, Bengaluru, and Mumbai), so any changes in these geographical markets could adversely impact the business. Similarly, many of Smartworks’ clients lease large spaces (300+ seats); if a major client terminates its contract, it could significantly affect revenue. Furthermore, due to the company’s fixed costs, economic downturns could increase financial stress.
Based on the grey market premium in the financial market, trading is occurring close to the upper price band of the IPO, reflecting positive investor sentiment. Still, given the long-term potential of the flexible workspace sector and Smartworks’ focus on Indian and global clients, this IPO could be an attractive opportunity for long-term investors. However, due to the higher risk involved, it is important to make investment decisions cautiously. From an investment standpoint, Smartworks Coworking Spaces offers long-term growth opportunities, but strategies must account for current financial challenges and competitive pressures.
