Co-working player Smartworks to add 3 million sq ft office space in FY22

Several projects already under discussion, firm is also offering clients option to downsize or upsize across the geographies they operate in

Co-working start-up Smartworks is looking to add another three million square feet by the end of FY22 to its already existing footprint of four million square feet office space, as it sees strong traction from large enterprises post the lockdown.

Several of these projects are already under discussion, said Neetish Sarda, founder, Smartworks, which is currently present in 9 cities across India. The company is also offering clients the option to downsize or upsize across the geographies they are present in according to the requirement of the enterprise. 

“A lot of enterprises are coming to us saying they don’t want to maintain their own offices in the post pandemic world as people don’t know what the workplace strategy is going to be like,” says Sarda, who has recently signed up clients such as Fullerton india, coMakeIT, Dun & Bradstreet Technology and Corporate Services India and Indira IVF. 

Sarda believes while work from anywhere will be an option, since 60 per cent of the country’s commercial real estate is outsourced from the US, the demand for flexible workspaces from large clients will continue to be there. With demand coming in, the company is targeting a revenue of Rs 1,000 crore by FY23 from the current Rs 250 crore. 
 

"People will look at workspace as a service rather than just an upfront capital expenditure put up on their books so a lot of traction will move towards the managed co-working space in future," believes Sarda.

According to a Savills India report, leasing activity by co-working operators is expected to increase by 42 per cent in 2021 over 2020, and the share of co-working space take-up in overall office leasing activity is poised to rebound to a 15 per cent share in 2021, similar to the 2019 level.  

Smartworks has been tapping the huge pool of unbranded local builders in the country, taking these properties on long-term leases of 15-20 years, and creating a brand to attract large multinational entities who sign up for an average of 350-400 seats. 

It not only provides a workspace but also manages it on a day to day basis. The whole office is customised according to the needs of the client and everything from car parking, office access, F&B ordering, booking of seats is managed by their in-house app for a touchless experience. 

The co-year. While it will create a product for the customer base to start with, such products will be later rolled out in the market for clients who want to create a smart building experience. 

With presence across 31 locations in 9 cities including Delhi NCR, Kolkata, Bengaluru, Mumbai, Hyderabad, Chennai, and Pune, the company is also seeking to expand to Tier 2 geographies such as Jaipur, Chandigarh and Bhubaneswar with at least one centre in these locations.

Smartworks: Future plans

- Targeting revenue of Rs 1,000 crore by FY23

- Roll out  a separate proptech company by mid of 2021

- Enter Tier 2 towns with at least one centre in these locations