IPO proceeds to help Smartworks cut debt, improve margins, say co-founders of coworking spaces

The ₹582.56-crore IPO of Smartworks Coworking Spaces is set to open for subscription on July 10. The flexible workspace operator, which received regulatory approval from the Securities and Exchange Board of India (Sebi) in December 2024, has revised its fresh issue size from the earlier planned ₹550 crore to ₹445 crore, while the offer for sale (OFS) component now stands at ₹137.56 crore.

In an exclusive conversation with Fortune India, Smartworks co-founders Neetish Sarda and Harsh Binani shared insights into the company’s IPO journey, capital-raising objectives, and strategic roadmap for future growth.

“In just eight years, including two years of Covid, SmartWorks has grown to become India’s largest campus-based flexible workspace platform. Today, we manage over 10 million sq. ft across 14 cities,” said Harsh Binani, co-founder Smartworks.

“Our differentiated model, built around large-format campuses and focussed on serving enterprise clients, positions us strongly for the next phase of growth. We believe the IPO will provide us with the necessary capital to scale our business faster, while also enabling expansion into key ancillary services," he said.

“Additionally, the IPO proceeds will help us enhance profitability by retiring high-cost debt. It also allows us to reward one of our early backers for their continued support during our growth journey,” Binani added.