National coworking space leader Smartworks is getting prepared for his IPO with a fresh issue of Rs 550 crore. This is rather strange because in the last fiscal the company suffered a net loss of almost Rs 50 crore. But revenue is on an increase; for the next fiscal ending March 31, 2023 it stood at Rs 1,113 crore as against to Rs 744 crore of the previous fiscal.
Smartworks may access new markets with the IPO; it has proposed to invest Rs 282. 3 crore for new center fit-outs and security deposits out of which 90 lakhs have already been utilized for some of the new fit-outs. They are at the moment running 41 centers in 13 cities providing over 1. 66 lakh desks.
This comes as the Indian office market – including the coworking subsector – shows a strong recovery in the wake of Covid-19. The strategic plan of Smartworks explores this segment’s potential growth trajectory and wants to “realize greater and sustained revenue growth and reduce proportionate expenses in future periods, to become profitable.
