Awfis, a prominent player in the coworking space industry and backed by Peak XV Partners, has taken a significant step towards its growth plans by filing its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The upcoming Initial Public Offering (IPO) includes a fresh issue of INR 160 Crore and an offer-for-sale component featuring shares from key stakeholders.
Key Points:
- DRHP Filing: Awfis, known for its innovative coworking solutions, has officially filed its DRHP, indicating its intent to go public. The IPO comprises a fresh issue of INR 160 Crore, signaling the company’s strategic move to raise capital for expansion and business development.
- Offer-for-Sale Component: The offer-for-sale (OFS) component includes the sale of up to 1 Crore shares. Stakeholders participating in the OFS component include Peak XV, Bisque Limited, and Link Investment Trust. This diverse mix of contributors adds depth to the overall offering.
- Utilization of Funds: Awfis plans to utilize INR 52.5 Crore from the net proceeds to establish new coworking setups. The company aims to open 15 new centers under the ‘Awfis’ format in Fiscal 2025, spanning key cities like Mumbai, Bengaluru, Delhi NCR, Hyderabad, Pune, Chennai, Kolkata, Ahmedabad, Lucknow, Bhubaneswar, and Jaipur.
- Working Capital Allocation: The remaining net proceeds, totaling INR 68 Crore, will be allocated towards working capital requirements. This allocation underscores Awfis’s commitment to sustaining and enhancing its operations.
- Financial Overview: Awfis reported impressive financials, with a revenue of INR 545.28 Crore in FY23, marking a significant increase from the previous year. The company’s net loss also saw a slight decline, demonstrating its focus on financial sustainability. The filing also revealed operating revenue and loss figures for the first three months of FY24.
Expansion and Innovation Roadmap:
Founded in 2015 by Amit Ramani, Awfis has evolved beyond being a conventional coworking network, positioning itself as a tech-enabled workspace solutions platform. The company caters to a diverse clientele, ranging from freelancers and startups to SMEs, large corporates, and MNCs. With nearly $90 Million raised across multiple funding rounds, Awfis competes with industry giants such as WeWork, 91Springboard, OYO’s Innov8, and BHive.
Conclusion:
As Awfis prepares for its IPO journey, the infusion of fresh capital is anticipated to fuel its expansion initiatives and further solidify its position in the coworking space sector. The DRHP filing represents a strategic move that aligns with the company’s commitment to innovation, client-centric solutions, and sustained growth.
