Gurugram-based Smartworks raises Rs 168 crore in funding led by existing investor Keppel Ltd, others

Singapore-headquartered flexible workspace operator Smartworks has raised Rs 168 crore or approximately $20.24 million in funding from a diverse group of investors. 

The funding was led by investors, including Keppel Ltd, Ananta Capital Ventures Fund I, Plutus Capital, family trusts, and several high-net-worth individuals (HNIs). 

In 2019, the startup raised $25 million from Singapore-based Keppel Land.

Purpose of fundraising

The startup will use the raised capital for the growth and expansion of its business operations.

“We thank our investors for their continued confidence in our capabilities and the office experience and managed campus platform. Capital from the latest fund-raising will be used for the growth and expansion of the business of the company and to meet its general corporate expenses. We remain committed to our growth," said Neetish Sarda, founder of Smartworks.

The strategic infusion of funds will enable Smartworks to enhance its market presence and operational capabilities across India’s burgeoning commercial real estate sector.

Notably, The promoters of Smartworks retain a majority shareholding in the company following this funding infusion.

What does Smartworks do?

Founded in April 2016 by Neetish Sarda and Harsh Binani, Smartworks manages over 8 million square feet of office space. The company claims to operate in more than 40 locations in 14 cities, including major hubs like Bengaluru, Kolkata, Delhi NCR, Mumbai, and Pune.

It caters to over 600 organizations, including Forbes 2000/Fortune 500 companies, multinational corporations, unicorns, and soonicorns.

Last month, Smartworks expanded its presence in Pune by leasing a 14-floor tower in the Balewadi area. The tower is expected to accommodate 8,000 desks.

Smartworks' market presence

In Fiscal 2024, Smartworks expanded its footprint by adding new centres in various prime locations. These include Golf View Corporate Towers in Gurgaon, Logix Cyber Park in Noida, Amar Tech Center and 43EQ in Pune, and Olympia Pinnacle in Chennai.

As of March 31, 2024, Smartworks boasts a presence in 13 cities with a portfolio comprising 41 centres that span across 8 million square feet.

The startup plans to add 3-4 million square feet of flexible office space each year to cater to the growing demand from both domestic and foreign enterprises.

Investor comments

Keppel Ltd., a Singapore-based conglomerate, has been a significant and long-standing investor in Smartworks since its initial investment in 2019. To date, Keppel Ltd. has invested a total of $29 million in Smartworks. 

“Since Keppel’s initial investment in 2019, Smartworks has grown to become India’s leading managed workspace platform. This investment maintains our long-term involvement in India’s commercial office market as we look to expand Keppel’s office portfolio in India and support the country’s rapid urbanisation through our innovative urban space solutions,” remarked Louis Lim, CEO of Real Estate of Keppel Ltd. 

Aiming to achieve 30 million square feet of office space

Smartworks aims to achieve 30 million square feet of office space before potentially going public.

The company serves a substantial client base of around 550 enterprises, including major names such as Google, Accenture, Persistent Systems, and Samsung.

Financially, Smartworks saw its revenue from operations surge by 97.5% to Rs 711 crore in FY23, up from Rs 360 crore in FY22. However, the company also experienced a 44.29% increase in losses, which rose to Rs 101 crore in FY23 from Rs 70 crore in the previous fiscal year.