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 unused portions of malls or a warehouse, and taking up new facilities are ways in which the company will look to ramp up.
Type to Subscribe. We promise to send you only good things.
“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 “month-on-month” on a consolidated basis. However, the company has also begun the discussion to raise ₹100 crore. 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.
A 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 Smartworks’ revenue comes from enterprise clients. Around 20 per cent of its new revenues come from companies expanding in the same centre or other centres (of Smartworks) in other cities.