Co-working space provider, Smartworks, is eyeing acquisitions as it looks to near double its portfolio in India. Plans are also afoot to raise funds.
The Gurgaon-based company is looking to increase its available co-working space to 5 million square feet by March 2020; as against the 2.5 million square feet across the 22 facilities at present.
According to Neetish Sarda, Founder, Smartworks, acquisition of smaller co-working space players, leveraging alternative asset classes like un-used portions bf malls or a warehouse, and taking up new facilities are ways in which the company will look to ramp up.
“We are in talks for acquisition. But there is nothing concrete at the moment. Maybe these will materialise over the next three-four months” Sarda told BusinessLine
Acquisitions could be funded through own resources as Smartworks is already profitable â€œmonth-6n:monthâ€ on a consolidated basis. However, the company has also begun the discussion to raise ^100 crores. According to Sarda, talks are “at an advanced’ stage” and could materialise soon.
“Our profitability is more to do with our positioning. We look to focus on enterprise clients that ensure continuity of revenue stream and also profitability. It has worked well as a strategy and we intend to continue with it,” Sarda said.
Proof of the strategy working outcomes from the fact that the company has. seen a 15-20 per cent rise in revenues on a month-on-month basis.
Nearly, 95 per cent of Smart-worksâ€™ revenue comes from enterprise clientsâ€™ Around 20 per cent of its new revenues come from companies expanding in the same centre or other centres (of Smartworks) in other cities.