SUMMARY
- Workspace provider startup Smartworks’ net loss for FY24 witnessed a significant reduction of 51% to Rs 49.8 crore, down from Rs 101.02 crore in FY23.
- The operating revenue of Smartworks surged by 46% to reach Rs 1,039.4 crore in FY24, a notable increase from Rs 711.4 crore in the previous fiscal.
- The company’s total expenses saw a notable increase of over 34%, reaching Rs 1,180.7 crore in FY24 compared to Rs 880.2 crore in FY23.
Workspace provider startup Smartworks‘ net loss for FY24 witnessed a significant reduction of 51% to Rs 49.8 crore, down from Rs 101.02 crore in FY23, attributed to robust business expansion.
The startup achieved a milestone in its revenue generation, surpassing the Rs 1,000 crore mark for the year under review. The operating revenue of Smartworks surged by 46% to reach Rs 1,039.4 crore in FY24, a notable increase from the previous fiscal year’s figure of Rs 711.4 crore.
Lease rentals accounted for 96% of the startup’s revenue, marking a 45% increase from the previous year’s earnings of Rs 687.5 crore. Additionally, Smartworks generated Rs 42 crore in revenue from ancillary services during the latest fiscal year.
Including other sources of income, the total income for FY24 stood at Rs 1,113.1 crore, a significant growth from the previous year’s total income of Rs 744.1 crore.
Established in 2016 by Neetish Sarda and Harsh Binani, Smartworks is a provider of shared workspace solutions, offering customizable coworking options for enterprises. The company currently operates across over 8 million square feet of office space in more than 40 locations across 14 cities, including Bangalore, Kolkata, Delhi NCR, and Mumbai. It serves over 600 enterprises, including notable clients such as Honeywell, Starbucks Coffee, DHL, and Moglix.
As of March 31, 2024, Smartworks had a workforce of 651 employees, an increase of 6% from the previous year’s count of 564 employees, as detailed in its draft red herring prospectus.
The company’s total expenses saw a notable increase of over 34%, reaching Rs 1,180.7 crore in FY24 compared to the previous fiscal year’s figure of Rs 880.2 crore. The largest component of these expenses is operating expenses, which accounted for the majority. Operating expenses saw a 38% increase to Rs 303 crore in FY24 from Rs 220.1 crore in FY23. These expenses primarily include housekeeping, security, support services, plantation and pest control, electricity and water charges, building maintenance, equipment and asset hire charges, commission and brokerage, communication expenses, lease rentals, freight and transportation, and parking space charges.
The startup allocated Rs 34.9 crore towards commission and brokerage expenses, which it highlighted as a significant cost driver in its draft red herring prospectus.
In FY24, Smartworks allocated Rs 328.3 crore towards finance costs, marking a 39% increase from the previous year’s expenditure of Rs 236.7 crore. These finance costs are primarily composed of interest expenses on lease liabilities, borrowings, and financial liabilities, along with other finance costs such as interest on asset retirement obligations and others.
Employee costs witnessed a 22% increase to Rs 49.6 crore during the year under review from Rs 40.8 crore in FY23.
Notably, the IPO of Smartworks is set to include a fresh issue of equity shares valued at Rs 550 crore, along with an offer for sale (OFS) component of 67.49 lakh equity shares.
Competing against industry giants such as Awfis, WeWork India, and IndiaQube, Smartworks is poised for a significant market entry. Awfis made its debut in the public market earlier this year with its shares being listed at Rs 432.25 apiece on the BSE indicating a premium of 12.8% to the issue price.
