Smartworks Expands Mumbai Footprint to 1 Million Sq Ft: A Strategic Move in India
Smartworks Coworking Spaces is making a significant investment in the Indian market, particularly in Mumbai, where it has expanded its footprint to over 1 million square feet. Neetish Sarda, MD & Founder of Smartworks, announced the leasing of a 5.57 lakh square foot building from Tata Realty, marking a 125% increase in the company’s Mumbai footprint.
This new property, which will serve as the largest coworking campus in the city, will house over 12,000 seats. Sarda clarified that the deal with Tata Realty does not involve revenue sharing. “We’ve leased the entire building on a long-term lease, and there is no revenue-share model,” he said. The demand for coworking spaces in Mumbai remains strong, particularly from enterprise IT and global capability centres (GCCs).
Smartworks has been steadily improving its financial performance. In the last fiscal year, the company reported a revenue of ₹1,375 crore. The first quarter of this year saw a 21% increase in revenue to ₹379 crore, with losses narrowing sharply from ₹56 crore last year to just ₹4 crore during the period. EBITDA margins improved from ₹58 crore to ₹90 crore, and operating cash flows remained robust. “In the first quarter of this year alone, we generated free cash flow of over ₹70 crore,” Sarda said. He added that Smartworks is now net-debt-negative, having repaid high-cost loans with proceeds from its IPO in July.
While Smartworks has a presence in Singapore, where both of its centers have achieved over 95% occupancy within a year, Sarda emphasized that the company’s main focus remains on India. “India is such a huge market with enormous potential. We’ve already signed over 1.5 million square feet just in the first half of this year, and demand continues to be strong. Strategically, we want to keep growing in India, as we are still a relatively small player in a massive market,” he said.
The expansion in Mumbai is part of Smartworks’ broader strategy to capitalize on the growing demand for flexible workspace solutions in India. The company’s commitment to the Indian market is evident in its aggressive leasing and development activities, which aim to meet the needs of both local and international clients.
In conclusion, Smartworks’ expansion in Mumbai reflects its confidence in the Indian market and its ability to provide high-quality coworking spaces that meet the evolving needs of businesses. The company’s strong financial performance and strategic focus on India position it well for continued growth and success.
