Smartworks, a leading coworking startup, has successfully raised approximately $12 Mn (about INR 100 Cr) in its latest funding round, spearheaded by Ananta Capital, the notable investor behind Bella Vita Organic. The funding round witnessed participation from a diverse group of investors, with around 45 contributors, including Plutus Capital, Kili Ventures LLP, and Dhawan Family Trust.
The Funding Landscape
The recent infusion of funds marks a significant milestone for Smartworks, consolidating its position in the coworking space segment. This funding follows closely on the heels of Smartworks’ earlier investment round, where it secured nearly $4 Mn from its existing investor, Keppel Land, a Singapore-based entity.
Strategic Vision
Neetish Sarda, cofounder of Smartworks, had previously indicated the startup’s ambitious plans to raise between $70 Mn to $90 Mn. The current funding round appears to be a step towards realizing this vision, bolstering the company’s financial arsenal for future growth and expansion initiatives.
Growth Trajectory
Since its inception in 2016 by Neetish Sarda and Harsh Binani, Smartworks has rapidly emerged as a key player in the shared workspace domain. With a portfolio encompassing over 8 Mn sq. ft. of office space across 40+ locations in 13 cities, including major metropolitan areas like Bengaluru, Kolkata, Delhi NCR, Mumbai, and Pune, Smartworks caters to a diverse clientele comprising Forbes 2000/Fortune 500 companies, multinational corporations, unicorns, and soonicorns.
Expansion Initiatives
The recent funding infusion will likely fuel Smartworks’ ongoing expansion endeavors, enabling the startup to strengthen its presence in existing markets and venture into new territories. Notably, Smartworks recently forayed into the Pune market by securing a 14-floor tower in the Balewadi area, slated to accommodate approximately 8,000 desks.
Financial Performance
In terms of financial performance, Smartworks reported impressive figures for the financial year 2022-23 (FY23), with revenue surging by 98% year-on-year to INR 711 Cr. However, the net loss witnessed a moderate increase, rising by 44% to INR 101 Cr, underscoring the company’s aggressive growth strategy and investment in expansion initiatives.
Competitive Landscape
Smartworks faces competition from prominent players in the coworking segment such as WeWork India, IndiaQube, and Awfis, the latter being recently listed. Despite the competitive dynamics, Smartworks remains well-positioned to capitalize on the burgeoning demand for flexible workspace solutions, driven by evolving work culture paradigms and the rise of the gig economy.
