IPO-Bound Smartworks FY25 Loss Widens, Revenue Up 32%

Smartworks Coworking Spaces, which plans to launch IPO on July 10, has posted a net loss of Rs 63.17 crore in the last financial year despite rise in income from operations. Its net loss stood at Rs 49.95 crore in the preceding 2023-24 financial year.

However, the revenue from operations rose to Rs 1,374.05 crore in the 2024-25 fiscal year from Rs 1,039.36 crore in the preceding year, according to red herring prospectus (RHP) filed by the company.

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

"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.

Smartworks will hit the capital market on July 10 to launch its initial public offering (IPO). The issue will conclude on July 14. The company has revised its IPO size downward.

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

About Rs 226 crore from the total proceeds will be used for capital expenditure related to the fit-outs in new centres and security deposits for these new centres, Rs 114 crore will be allocated for the payment of loans, and the remaining funds will be utilised for general corporate purposes.

Smartworks, one of the leading co-working operators in the country, takes on lease office spaces from landlords and then sub-leases the areas to corporates.

It has an operational portfolio of 8.31 million sq ft area while 0.7 million sq ft is under fit-outs.

The company has taken on lease another 1.7 million sq ft area from landlords, but it has not got the possession to set up the centres.

The total portfolio will cross 10 million sq ft, including the spaces under fit-outs and signed.