India’s largest managed office space provider, Smartworks coworking spaces IPO opens for subscription with its ₹582.56 crore IPO, joining the stampede of flexible workspace brands seizing the moment to tap eager investors in 2025’s IPO frenzy.
The IPO opened on July 10, targeting nearly ₹600 crore to fund expansion and reduce debt. Priced in a band of ₹387 to ₹407 per share, with investors able to bid in lots of 36 shares, making the minimum investment around ₹14,652 at the upper band and the offer will close on July 14.
By July 14, 2025, the IPO was subscribed 1.2 times, with a GMP of ₹20, reflecting a 4.91% premium over the upper price band of ₹407. Among the individual categories, NIIs bid the highest, oversubscribing the category reserved for them by 2.76 times. This was followed by retail investors, who bid 1.57 times, while qualified institutional buyers (QIBs) took up 63% of their allotted shares.
According to the data of NSE, investors placed bids for 1,19,96,496 shares—easily exceeding the 1,04,01,828 shares available in the IPO. In this article, we provide a comprehensive analysis of Smartworks—examining its business model, revenue streams, strengths, Risks involved, financial performance, and expert insights to help you make a well-informed investment decision.
About Smartworks
Smartworks was founded in 2016 and has emerged as India’s largest operator in the managed office segment by leased area. As of March 2025, it operates around 10 million square feet across 50 centres in 15 Indian cities, with two new centres that were launched recently in Singapore. The company takes bare-shell properties and transforms them into fully serviced, tech-enabled workspaces designed for modern businesses.
Beyond high-quality office infrastructure, it offers a suite of value-added services, including cafeterias, crèches, smart retail stores, meeting and event spaces, managed reception, and custom fit-out solutions. With an emphasis on seamless technology integration, Smartworks also provides advanced access controls, visitor management, and collaborative tools to deliver a turnkey, flexible workspace experience that appeals to enterprises of all sizes.
Financial Performance
Smartworks has shown rapid growth but remains loss-making:
- Revenue rose from ₹711 crore in FY23 to ₹1,374 crore in FY25 (39% CAGR).
- Adjusted EBITDA jumped from ₹36 crore to ₹172 crore (117% CAGR).
- The net loss stood at around ₹63 crore in FY25.
Analysts highlight the company’s asset-light model, which will help scale quickly without owning properties outright, but they note the path to profitability remains a key risk.
Strengths
Smartworks has achieved strong revenue growth with a 37.6% CAGR over the past three years, driven by solid demand for flexible workspaces. Its 83.12% occupancy rate reflects strong enterprise interest, while 86.83% seat retention shows high client loyalty. Operational efficiency is a major advantage, with fit-out costs 43% below industry averages. Powered by its proprietary BuildX platform, Smartworks accelerates fit-out timelines and cuts costs, giving it an edge over traditional real estate players and enabling rapid expansion across key markets.
Risks involved
- Consistent Losses: Despite strong revenue growth, Smartworks remains loss-making, with net losses of ₹63.18 crore in FY25 alone, raising concerns about achieving sustainable profitability.
- Geographic Concentration: Around 75% of FY25 rental revenue comes from just four cities, making it vulnerable to local economic shifts.
- Client Dependence: Heavy reliance on large enterprise clients needing 300+ seats heightens the risk if major tenants exit.
- High Fixed Costs: Long-term leases with built-in rent hikes pushed lease rentals to ₹661 crore in FY25, creating significant fixed cost pressures and relocation risks if terms change.
- Churn Risk: Flexible workspace contracts remain short-term, demanding constant client acquisition to maintain occupancy.
- Regulatory Scrutiny: The company has faced anonymous allegations of operational irregularities, which it denies.
- Promoter Pledges: Over 2 crore shares have been pledged to secure ₹125 crore in company borrowings.
- Past Control Issues: Deloitte flagged internal control weaknesses in FY23, though Smartworks reports improvements.
Analyst Recommendations
Brokerage firms have generally rated the Smartwork Coworking Spaces IPO as Subscribe (Long Term)
- Strong growth potential in India’s flex-space sector
- Leadership position and asset-light scaling model
- Diversified corporate client base
However, they also warn about:
- Continuing net losses and the profitability timeline
- Competitive pressures from other coworking players
- Dependence on large enterprise leasing cycles
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult your financial advisor before making any investment decisions.