Awfis aims to double revenue in FY23; plans IPO by Dec next year

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

The company also 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 the company has so far raised about Rs 450 crore from investors.

At present, Awfis has 150 centres across 17 cities, comprising about 90,000 desks. It offers a desk in a price range of Rs 7,000-20,000 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 last financial year from Rs 220 crore in 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 operations for more than 6 months have an occupancy of around 85 per cent.

On clients profile, Ramani said around 35 per cent of its clients are large enterprises.

Talking about per desk pricing, he said the rate fell during the pandemic but now it is 10-20 per cent 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 per cent of portfolio is through pure leasing where it has to make capital expenditure.

It has partnered with 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.

Awfis IPO

On fund raising, Ramani said the company has no such plans but it is planning to launch the IPO by December next year.

"We will start preparation from April onwards and plan to file the Draft Red Herring Prospectus (DRHP) with Sebi by middle of the next year," he said, but did not share the size of the IPO.