IPO-Bound Smartworks' FY25 Loss Widens 27% To INR 63.2 Cr

IPO-bound coworking startup Smartworks’ consolidated net loss rose 26.5% to INR 63.2 Cr in the fiscal year 2024-25 (FY25) from INR 49.9 Cr in FY24.

The company, whose public issue is set to open on July 10 and close on July 14, disclosed its bottom line numbers in its red herring prospectus (RHP).

Notably, the losses continue to pile up even as the company saw strong growth in revenue and total income. Smartworks’ operating revenue stood at INR 1,374.1 Cr in FY25, up 32.3% from INR 1,039.4 Cr a year ago.

This marks a continued upward trajectory from INR 711.4 Cr in FY23, signalling sustained demand for the startup’s flexible office offerings.

Total income for the fiscal under review stood at INR 1,409.7 Cr, up 26.6% from INR 1,113.1 Cr in FY24.

Smartworks’ top line growth was offset by rising expenditures. Total expenses for FY25 stood at INR 1,489.1 Cr, up from INR 1,180.7 Cr in FY24. These were driven by higher operating, employee and finance costs. Depreciation and amortisation (D&A) were the biggest cost centres. In FY25, D&A accounted for about 43% of Smartworks’ total expenses at INR 635.9 Cr.

If not for the high depreciation and amortisation, Smartworks would’ve been profitable.

Decoding Smartworks’ Cap Table

As per the RHP, the total share capital of the company consists of 10.31 Cr equity shares (10,31,89,592 to be precise), each with a face value of INR 10. The promoters and promoter group hold a majority stake, owning 6.72 Cr shares (6,72,72,413 to be precise), or 65.19% of the total share capital.

The remaining 34.81% stake, equivalent to 3,59,17,179 shares, is held by public shareholders. There are no shares issued as depository receipts or held by employee trusts.

Looking at the company’s top shareholders, NS Niketan LLP is the biggest stakeholder in Smartworks with a 41.48% stake. SNS Infrarealty holds a 23.67% stake in the company and Space Solutions India has a 19% stake.

Other notable shareholders include Mahima Stocks Private Limited (4.14%), Ananta Capital Ventures Fund I (2.07%), and Jagdish Naresh Master (1.13%).

Together, these six shareholders own around 91.49% of the company as it heads for the IPO.

How Smartworks Makes Money?

Founded in 2016 by Neetish Sarda and Harsh Binani, Smartworks earns its revenue mainly from leasing managed office spaces to clients. These are fixed rental agreements, often with a 5% annual increase, which form the core of the company’s income.

The company identifies itself as “office experience and managed campus platform,” and claimed to be the country’s largest managed campus operator in FY24. Notably, Smartworks mainly focusses on leasing large, bare shell properties and transforming them into fully serviced campuses with necessary amenities. It then rents out these managed campuses to clients.

On the back of this business model, the company’s rental income has grown steadily over the years – from INR 687.5 Cr in FY23 to INR 997.1 Cr in FY24, and then to INR 1,289.3 Cr in FY25.

As per the RHP, 75.2% of its rental revenue came from its Pune, Bengaluru, Hyderabad and Mumbai centres.

Apart from leasing, Smartworks generates small income from various additional services. These include charges for meeting rooms, internet access, parking, electricity, and similar facilities used by clients.

Revenue from these ancillary services increased from INR 23.9 Cr in FY23 to INR 42 Cr in FY24. The company’s top line from this vertical further increased to INR 48.8 Cr in FY25.

The company has also introduced software fees, linked to its in-house technology solutions used for managing workspace operations, which brought in an additional INR 1.2 Cr in FY25.

Smartworks also offers design and fit-out services to clients, which earned them INR 34.7 Cr in the fiscal ended March 2025. Additionally, they have formed revenue-sharing partnerships with retail and service brands, such as Chaipoint and Nutritap, for amenities provided within their centres.

Smartworks Gears Up For IPO

The coworking startup has filed its RHP to raise at least INR 445 Cr from its IPO. As per the latest IPO documents, the company trimmed the size of its fresh issue to INR 445 Cr from INR 550 Cr previously. Additionally, the coworking startup almost halved the size of its OFS to up to 33.79 Lakh shares from 67.49 Lakh shares earlier.

The fresh proceeds from the IPO will be used mainly for three purposes:

• INR 114 Cr will be used to repay outstanding borrowings
• INR 225.8 Cr will go towards capital expenditure, like interior fit-outs and deposits for new centres, spread across the next two financial years
• A portion of the proceeds, capped at 25% of the gross amount raised, will be set aside for general corporate purposes

D-Street Mania

The Smartworks IPO comes at a time when several Indian coworking startups are heading to the public markets amid growing demand for flexible office spaces. The shift to hybrid and remote work has made flexible, scalable offices more appealing, with businesses now favouring short-term, adaptable leases over traditional long-term setups.

For instance, DevX refiled its draft prospectus in April 2025, increasing its fresh issue to 2.75 Cr shares. IndiQube, founded in 2015, is also preparing for an IPO, though it hasn’t filed its DRHP yet.

Meanwhile, WeWork India filed its DRHP in February 2025, but SEBI has put the approval on hold. BHIVE is also eying an INR 500 Cr IPO, while Urban Vault aims to go public by 2028.

Then, there was Awfis, which went public in May 2024 and was oversubscribed more than 100X during the public issue.

This also comes at a time when a slew of new-age tech companies are lining up to list on the exchanges. Last week, four startups, including Wakefit, Curefoods, Meesho and Shadowfax, filed their draft papers with SEBI.

While Wakefit and Curefoods filed their draft IPO documents via open route, Meesho and Shadowfax filed their respective DRHPs through the confidential pre-filing avenue.

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