IPO-bound Smartworks Coworking Spaces reports ₹382 crore debt as of April 30; check other details

Gurugram-based Smartworks currently has 48 operational centres with over 1.9 lakh seating capacities.

"Our total outstanding borrowings as of April 30, 2025, were ₹3,819.67 million, on a consolidated basis," the company said in a Red Herring Prospectus (RHP) filed with SEBI.

Smartworks will hit the primary market on July 10. The issue will close on July 14.

The company has revised its IPO size downwards.

The size of the fresh issue has been reduced to ₹445 crore from the earlier planned ₹550 crore, while the offer for sale (OFS) by promoters has been cut to 33.79 lakh shares from 67.59 lakh shares.

Out of the total proceeds from the fresh issue of shares, the company will use ₹226 crore for capital expenditure related to the fit-outs in new centres and security deposits for these new centres.

It will utilise ₹114 crore for payment of loans, and the remaining funds will be used for general corporate purposes.

Smartworks posted a net loss of ₹63.17 crore in the last financial year due to higher expenses than income.

Its net loss stood at ₹49.95 crore in the preceding 2023-24 financial year.

However, the revenue from operations rose to ₹1,374.05 crore in the 2024-25 fiscal year from ₹1,039.36 crore in the preceding year.

"These losses were on account of our total income being lower than the expenses for the relevant fiscal," the company said in the RHP.

Smartworks said it aims to generate and sustain increased revenue levels and decrease proportionate expenses in future periods to achieve profitability.

About Smartworks Coworking Spaces

Smartworks Coworking Spaces is a leading platform for office experiences and managed campuses. It specialises in leasing large, bare-shell properties in prime locations and transforming them into fully serviced, tech-enabled campuses with modern amenities.

These campuses include cafeterias, sports zones, gyms, medical centres, and more, offering a modern and attractive work environment. The company caters to businesses of all sizes, with a focus on mid-to-large companies that need over 300 seats.

The company is concentrated in cities including Bengaluru, the Mumbai Metropolitan Region, Hyderabad, Gurugram and Chennai.

Between FY23 and FY25, Smartworks expanded its operations by adding 2.83 million sq ft of space under management, achieving a CAGR (compound annual growth rate) of 20.80%.

Smartworks top competitors

According to Tracxn, Smartworks is a Series B company based in Gurugram (India), founded in 2016 by Harsh Binani and Neetish Sarda. Smartworks has raised $69.9M in funding from investors such as Mansoul Commercial, Atul and Vision Comptech, with a current valuation of ₹2,780 crore.

The company has 1,469 active competitors, including 123 funded and 50 that have exited. Its top competitors include companies like WeWork, Convene and Industrious.

A Series B company is a startup that has successfully secured its second round of venture capital funding. This stage usually follows Series A, indicating the company has achieved certain milestones such as product-market fit and demonstrated growth and is ready to scale its operations.