In FY23, Smartworks’ revenue exceeded Rs 700 crore, but losses swelled

Smartworks, a co-working platform, has grown rapidly over the last two fiscal years, more than doubling its revenue to Rs 710 crore in the fiscal year ending March 2023. However, the company’s losses also swelled.

Smartworks’ operating revenue increased by 97.5% to Rs 711 crore in FY23, up from Rs 360 crore in FY22, according to consolidated financial filings.

Smartworks offers managed office spaces by leasing assets from real estate developers and then subleasing them to businesses or individuals. The company has offices in Delhi-NCR, Kolkata, Bengaluru, Chennai, Pune, and Hyderabad, among other locations.

Smartworks, based in Gurugram, has secured more than $50 million to far, including a $25 million Series A round from Singapore’s Keppel Land. The startup is also apparently looking to raise $70-90 million.

Smartworks’ focus on managed office spaces, rather than co-working, has allowed them to serve a bigger segment of the market, particularly larger organizations that are less interested in co-working. However, as previously said, this can significantly increase costs, requiring the firm to traverse a longer runway to profitability. With excellent revenue momentum and a very healthy commercial sector, it appears that the firm will soon be profitable and looking for new paths and markets for growth.