Smartworks, the Neetish Sarda and Harsh Binani-founded coworking startup, is gearing up for its public debut even as losses continue to rise. According to its red herring prospectus (RHP), the company reported a consolidated net loss of ₹63.2 crore in FY25 — up 26.5% from ₹49.9 crore in the previous year.
The company’s IPO is scheduled to open on July 10 and close on July 14. Notably, this rising loss comes despite strong revenue growth and solid demand for flexible office spaces.
Smartworks posted an operating revenue of ₹1,374.1 crore in FY25, marking a 32% jump from ₹1,039.4 crore last year. Its total income climbed 26.6% year-on-year to ₹1,409.7 crore. But rising costs — particularly depreciation, employee, and finance expenses — pushed total FY25 expenditures to ₹1,489.1 crore, compared to ₹1,180.7 crore in FY24. Depreciation and amortisation alone accounted for 43% of costs at ₹635.9 crore.
Despite the drag from depreciation, the company remains confident about its business fundamentals, with recurring revenues from its managed campuses continuing to grow.
Steady expansion and revenue streams
Founded in 2016, Smartworks claims to be India’s largest managed campus operator, focusing on leasing large bare-shell properties and transforming them into fully serviced offices. Rental income rose from ₹687.5 crore in FY23 to ₹997.1 crore in FY24 and then to ₹1,289.3 crore in FY25 — with Pune, Bengaluru, Hyderabad, and Mumbai driving over 75% of the revenue.
Apart from rentals, Smartworks also earns from meeting rooms, internet, parking, fit-outs, software fees, and partnerships with brands like Chaipoint and Nutritap.
IPO details and market context
Smartworks plans to raise at least ₹445 crore through its IPO, trimming its earlier fresh issue size from ₹550 crore. It also cut its offer-for-sale component to 33.79 lakh shares from the previously planned 67.49 lakh shares.
Proceeds from the IPO are earmarked for debt repayment (₹114 crore), capital expenditure (₹225.8 crore), and general corporate purposes.
The IPO comes amid a wave of coworking and new-age startups heading to the markets, riding on the hybrid work trend. Peers like Awfis, WeWork India, BHIVE, and DevX are also either listed or lining up for IPOs.
While Smartworks’ losses underscore the challenges of scale and heavy capex in the sector, its steady revenue growth and leadership in managed campuses signal confidence as it prepares to test investor appetite.