Co-working firm Awfis plans IPO by December 2023

Co-working operator Awfis is targeting a two-fold jump in revenue to Rs 600 crore in FY23 as demand for flexible workspace has risen post the second wave of the COVID pandemic, its founder and CEO Amit Ramani said.

The company plans to launch its initial public offer (IPO) towards the end of 2023, mainly to raise funds and give exits to investors, he said, adding that the company has raised about Rs 450 crore from investors so far.

At present, Awfis has 150 centres across 17 cities, comprising about 90,000 desks. It offers a desk in a price range of Rs 7,000-Rs 20,000 per month.

In an interview with PTI, Ramani said the co-working segment, which includes managed office space, has been performing exceedingly well in the past 12-15 months.

"Our revenue grew to Rs 280 crore in the last financial year from Rs 220 crore in the previous fiscal year. This financial year, we are targeting around Rs 600 crore revenue," he said.

Ramani highlighted that the company has already achieved a monthly run rate of Rs 500 crore in revenue.

Asked about the occupancy level, he said, the centres that are in operation for more than six months have an occupancy of around 85%. On clients' profiles, Ramani said around 35% of them are large enterprises.

Talking about the per-desk pricing, he said, the rate fell during the pandemic, but now it is 10-20% up from the pre-COVID level.

For expansion in an asset-light mode, the company is partnering with real estate developers and individual landlords. However, 25% of its portfolio is through pure leasing, where it has to make a capital expenditure.

It has partnered with the Bengaluru-based Prestige Group to open co-working centres at various locations.

Earlier this year, Awfis tied up with Blackstone Group firm Nucleus Office Parks for a new centre in Mumbai, with a seating capacity of 450.

On its fundraising, Ramani said, the company has no such plans, but it is planning to launch the IPO by December next year. However, he did not share the IPO size.

"We will start preparation from April onwards and plan to file the Draft Red Herring Prospectus (DRHP) with the SEBI by the middle of the next year," he said.