Flexible office space provider Smartworks’ portfolio to touch 10 million sq. ft this year; to focus on expansion in Tier-2 cities
The company is set to triple its revenue to Rs 1,000 crore in 2022-23 from the current Rs 350 crore in FY22, returning back to pre-COVID-level growth of 300 percent.
Representative image.
With the demand for managed office spaces increasing after three waves of COVID-19, Smartworks, India’s largest managed workspace platform, is planning to add another three million sq ft this fiscal and take its total footprint to around 10 million sq ft across the country.
The company has been on an aggressive expansion spree adding over 12 percent of India’s commercial office space in the last two quarters
While the company’s expansion strategy would primarily focus on Tier 1 cities such as Bengaluru, Hyderabad, Pune, Chennai, Noida, Delhi and Gurgaon, and Mumbai, it would also look at expanding its footprint into Tier 2 cities such as Kochi, Coimbatore, Indore, Ranchi and Ahmedabad.
The company is set to triple its revenue to Rs 1,000 crore in 2022-23 from the current Rs 350 crore in FY22, returning back to pre-COVID level growth of 300 percent.
‘We would largely focus on Tier-1 cities as our market leadership and current penetration are strong enablers for rapid growth. As for Tier-2 cities, we will follow a dual strategy which would include inorganic growth and the franchisee route. We are witnessing growth in cities such as Kochi, Coimbatore, Indore, Ranchi, and Ahmedabad. We have also expanded to Jaipur as we are also seeing very strong demand there. We will also be coming up with Tier-2 specific requirements catering to their talent needs. The Tier-1 cities where we will continue to focus include Noida, Chennai, Mumbai, Pune, Hyderabad and Bengaluru,” Harsh Binani, co-founder, Smartworks, told Moneycontrol.
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He said that the company’s total footprint at present is about 7 million sq ft .
“COVID-19 has altered the entire office landscape. Our focus has been more on enterprises which have now moved to a more hybrid workspace. We have seen very strong tailwinds in terms of revenue growth which has more than doubled in a span of five months. Our expansion plans for 2022 remain bullish and we plan to add another three milion sq ft to extend our market leadership and take advantage of the fundamental shift in user preference towards flex spaces,” he said.
While IT/ITeS companies form a major chunk of the company’s clientele, firms in the BFSI and manufacturing space are also a large part of its portfolio.
As for rentals, he said that there has not been a major contraction, except in certain locations.
Binani also said that one of the major challenges for large enterprises is to get their employees back to work post-COVID.
“Expectations of employees have changed after three waves of COVID-19. They have become more demanding. Office space providers have a greater responsibility now. The intent is to build several e-commerce partnerships, especially for our large campuses to offer employees a holistic experience,” he said.
The company has increased focus on ancillary services such as dedicated gaming zones for recreation, gym facilities for health and fitness, crèche facilities, locker rooms, rage rooms, courier services, cafeteria and pantry.
“The idea is to bring home to office, ensure that the employees get an opportunity to shop at 24x7 stores, get their laundry delivered. Our attempt of late has been to provide for more e-commerce options on campus through both online and offline offerings,” he added.
In December last year, the company announced that it will be investing nearly Rs 190 crore in its new tech venture that will offer services related to workspace management.
Founded in April 2016, Smartworks currently has a growing footprint of approximately seven million sq. ft. with a presence in 11 cities and 37 centres.
