IPO Pricing Announced for Smartworks: INR 387 to INR 407 Range
The Indian coworking office space market is experiencing a surge, with several startups planning to go public in the coming months. One of these companies is Smartworks, a Gurugram-based coworking startup founded in 2016 by Neetish Sarda and Harsh Binani.
Smartworks, which leases large buildings from landlords, converts them into campuses, and then rents them out to large enterprises, is set to launch its Initial Public Offering (IPO) on July 10, 2025. The issue will open for anchor investor bidding on July 9.
In its financial disclosures for the fiscal year 2024-25 (FY25), Smartworks reported a net loss of Rs 63.17 crore, a 21% increase compared to the previous fiscal year. However, the company also achieved a 32% increase in revenue, rising from Rs 1,039.36 crore in FY24 to Rs 1,374.05 crore in FY25. This growth reflects strong operational scaling and increased demand for coworking spaces.
Currently, Smartworks operates 48 centers with a seating capacity of over 1.9 lakh, signifying its significant footprint in the Indian coworking market. The company attributes the losses to expenses outpacing income during the fiscal year, but it expresses a strategic focus on increasing revenues while controlling and decreasing expenses to achieve future profitability.
Notably, 75.2% of its rental income in FY25 came from centres located in Pune, Bengaluru, Hyderabad, and Mumbai. The promoters of Smartworks, NS Niketan LLP and SNS Infrarealty LLP, will sell their shares via the Offer for Sale (OFS). Existing investor Space Solution India Pte Ltd will also pare its stake.
Smartworks' IPO will close on July 14. The public issue will comprise a fresh issue of up to INR 445 Cr and an OFS component of up to 33.79 Lakh shares. The startup is valued at about INR 4,650 Cr (around $540 Mn) at the upper end of the price band.
Interestingly, the Indian coworking office space market is estimated to be worth $2.08 Bn in 2025 and projected to grow to $2.91 Bn by 2030. Other coworking startups such as IndiQube and DevX have also filed their Draft Red Herring Prospectus (DRHPs) for an IPO.
It's worth mentioning that last year, another coworking startup, Awfis, went public with an IPO of INR 598.93 Cr. However, at the time of its IPO, Awfis was a loss-making entity.
Smartworks has raised a total funding of $45.1 Mn. The company plans to breakeven at the unit-building level in the next 12 months. The promoters of Smartworks have scaled down their OFS portion, while reserving equity shares worth INR 3.75 Cr for its employees and offering them a discount of INR 37 per share.
As Smartworks prepares to go public, it will be interesting to see how it manages to balance revenue growth and cost control to move towards profitability post-IPO. The company's success could significantly influence the trajectory of the Indian coworking market in the coming years.
Investing in Smartworks' Initial Public Offering (IPO) in July 2025 offers an opportunity for business growth, as the company aims to balance revenue growth and cost control to achieve future profitability in the finance sector. Currently valued at around $540 million, Smartworks, a significant player in the Indian coworking market, has reported an increase in revenue by 32%, while managing a net loss of Rs 63.17 crore in the fiscal year 2024-25.
