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Back in 2016, finding a decent office space in a big city usually meant two options: rent an old-fashioned setup and spend weeks on interiors, or overpay for a shared desk in a startup-heavy coworking zone.
Smartworks spotted the middle ground: offering large, ready-to-move campuses to enterprises with zero setup hassle, full service, and a sense of community.
Nearly a decade later, it runs India’s largest network of tech-enabled managed workspaces. With 728 clients and 1.7 lakh seats, it’s now heading to the public markets.
But behind the size and speed lies a key question: can it turn scale into sustainable profit?
IPO Details
About the company
Smartworks is not a typical coworking startup. It’s a B2B managed workspace provider that targets large enterprises, offering customised, tech-enabled office campuses with amenities like cafeterias, gyms, crèches, and medical facilities.
As of March 31, 2025, it had 169,541 seats across India, with four of the five largest leased office centers in the country including a 0.7 million sq. ft campus in Bengaluru. It serves 728 clients, including Indian corporates, MNCs, and unicorn startups, with 12,044 seats still unoccupied.
The company works with landlords to convert bare-shell properties into Smartworks-branded campuses and monetises through long-term leases. Partners like Chaipoint and ClearTax power on-site services, while clients benefit from ready-to-move campuses without capex.
Financial performance
Smartworks has grown its topline but remains in the red. Revenue rose from ₹744 crore in FY23 to ₹1,409 crore in FY25 (up 89% in two years). But FY25 also saw a wider net loss of ₹63.18 crore, compared to ₹49.96 crore in FY24.
Margins, however, are improving: EBITDA grew to ₹857 crore in FY25, with an EBITDA margin of 62.39%. Net worth stands at ₹107.5 crore, up from ₹31.5 crore in FY23, aided by equity infusions. The debt-to-equity ratio is high at 2.9, and RoNW is deeply negative at -58.76%.
(in ₹ million)
These numbers reflect a capital-heavy model still in scaling mode, with profitability hinging on utilisation and operating leverage.
Backers and buyers
Smartworks is promoted by Neetish Sarda, Harsh Binani, Saumya Binani, NS Niketan LLP, SNS Infrarealty LLP, and Aryadeep Realestates Private Limited. Collectively, the promoters held 65.19% of the company pre-IPO, which will dilute to 58.25% post-listing.
There were no anchor investors in the IPO. A small quota of 1,01,351 shares has been reserved for employees at a ₹37 discount. No institutional pre-IPO investors have been disclosed in the RHP.
The IPO funds will be used for…
₹225.84 crore will be invested in new center fit-outs and rental security deposits; critical to Smartworks’ growth engine. Another ₹114 crore is earmarked for debt repayment, helping reduce leverage. The rest is for general corporate purposes.
There is no acquisition agenda or diversification plan. The IPO is largely a capital efficiency move to scale faster without additional borrowing.
Risk factors
Smartworks operates in a capital-intensive industry with high fixed costs. Nearly 12,000 seats remain unoccupied, which may pressure margins if enterprise demand softens.
It is still loss-making, with high debt and negative RoNW. A lot depends on maintaining occupancy, controlling opex, and expanding seat capacity without overextending.
Importantly, the IPO comes in a market that has seen some fatigue in loss-making listings. Its lofty price-to-book value of 38.58 could test investor appetite despite growth potential.
The pro factors
Smartworks has strong competitive moats: scale, customisation, pan-India footprint, and enterprise stickiness. It already controls four of India’s five largest leased campuses; a sign of operational heft.
With 738 clients, 794 employees, and deep integration with landlords and service partners, it’s more ecosystem than real estate play. Its asset-light leasing model keeps ownership risk low.
The business has also shown operational efficiency: high EBITDA margins, stable revenue growth, and cost-conscious execution.
Final take
Smartworks is a story of India’s changing workspace—less cubicle, more campus. It has the scale, strategy, and segment focus to make its model work. But investors must see this IPO for what it is: a long-term bet on managed workspaces, not a quick post-listing win.
Its numbers show a business still in build mode. If you believe India Inc’s demand for flexible, managed campuses will accelerate, Smartworks is building in the right direction.
FAQs
What does Smartworks Coworking Spaces do?
Smartworks is a B2B managed workspace provider that offers large, tech-enabled office campuses to enterprises. It customises office spaces with amenities like cafeterias, gyms, and medical rooms, and operates on a lease model with property owners across India’s major cities.
When is the Smartworks IPO opening and what is the price band?
The Smartworks IPO opens on July 10, 2025, and closes on July 14, 2025. The price band is set between ₹387 and ₹407 per share, with a lot size of 36 shares.
How much is Smartworks planning to raise through its IPO?
Smartworks aims to raise ₹582.56 crore through the IPO, which includes a fresh issue of ₹445 crore and an offer for sale (OFS) worth ₹137.56 crore.
What is the business model of Smartworks?
Smartworks transforms bare-shell commercial properties into branded, managed office campuses and leases them to large enterprises. It earns rental income through long-term contracts, offering turnkey workspace solutions without capex to its clients.
Is Smartworks profitable?
No, Smartworks is currently loss-making. In FY25, it posted a net loss of ₹63.18 crore despite revenue of ₹1,409 crore. However, its EBITDA margin improved to 62.39%, indicating operational efficiency is improving.
What will Smartworks use the IPO funds for?
The company will use ₹225.84 crore for fit-outs and security deposits at new centers and ₹114 crore to repay debt. The remainder will go towards general corporate purposes. No acquisition or diversification is planned.
Who are the promoters of Smartworks Coworking Spaces?
The promoters include Neetish Sarda, Harsh Binani, Saumya Binani, NS Niketan LLP, SNS Infrarealty LLP, and Aryadeep Realestates Private Limited. Their collective holding will reduce from 65.19% to 58.25% post-IPO.
How many clients and seats does Smartworks have?
As of March 31, 2025, Smartworks had 728 clients and 169,541 seats across India. It operates four of the five largest leased office campuses in the country.
What are the key risks in investing in Smartworks IPO?
Smartworks faces risks from high fixed costs, continued net losses, high debt (D/E ratio of 2.9), and dependence on occupancy rates. Market fatigue for loss-making IPOs could also impact post-listing sentiment.
What makes Smartworks different from other coworking startups?
Unlike typical coworking spaces, Smartworks focuses on large enterprises, offering custom-designed, tech-enabled office campuses. Its model is asset-light, B2B-centric, and supported by long-term leases and deep landlord partnerships.
