Co-working space provider startup Awfis plans for IPO

Amit Ramani, Founder of Awfis
Amit Ramani, Founder of Awfis

Co-working space provider Indian startup Awfis plans to list on stock exchanges by 2022, according to a report. The co-working space provider Awfis founded in 2015 by Amit Ramani Delhi. He is also a founder of Architecture, Interior Design firm NELSON India. He has a degree of Master of Science in Real estate and Workplace Strategy.

India is a hub of small and mid-size businesses and the demand and cost of the workplace are very high in the metro cities. Awfis leads the sharing-culture in real estate workplace.

For a startup entrepreneur to multinational company wants to open its office in Indian metro cities will cost very high, to overcome the problem sharing work-space is the best option. Worldwide the concept of the culture of sharing is in trend and BPO service providers, small to midsize businesses, freelancers, multinational companies are now clients of Awfis.

Awfis logo

Co-working space provider startup Awfis has started in 2015, and profitable in 2 years, with a robust CAGR. Awfis In the year 2016, the company’s revenue was only Rs 1 crore, but with robust growth, the company achieved Rs 56 crore of revenue in the year 2018.

Now, company is planning to list its business in national stock exchanges by 2022.

To date, real estate startup Awfis raised a total of $73.6 million in 4 rounds of funding from 5 investors, including ChrysCapital, Sequoia Capital, InnoVen Capital, Yes Bank, and The Three Sisters Institutional Office.

In the latest funding round, Awfis has raised $30 million on Aug 6, 2019, from a Series D round.

Startup Awfis raised $20 million from Sequoia Capital in Series B round of funding in April 2017 and raised another $20 million from Sequoia Capital and InnoVen Capital in series C round of funding on July 2018.

Sequoia Capital and Yes bank infused more Rs 250 million by Series C round of funding in May 2019.

Continues flow of money from existing investors and new investors in the startup provides better growth opportunities to the startup Awfis. It builds the reputation of the startup and the confidence of investors in the sector.

At present, Awfis is operating from 10 main cities of India with 30,000 available seats, and 63 co-working centres.

The Startup Awfis plans to reach 2, 00,000 seats by 2022, at the time of IPO. The company claims that at present in India around 60-70% of small and mid-size businesses are struggling with the work-space problems, and company plans reach these groups of people to address their problem.

The concept of sharing the work-place is providing extra money to the entrepreneurs to invest more in core business activities.

Co-working startup Awfis has around 1500 corporate clients, including Vodafone, Reliance, Hitachi, Zomato, Practo, Blazeclan, Syngenta, Phelps, Hinduja Global Services, etc. In the co-working centres, the space provider sets all basic amenities needed to run a business office, arrange conferences, meetings, and seminars, run BPO centres, etc.

Another big Indian Unicorn startup OYO also plans for the IPO in the coming years. Oyo is spreading its business to overseas countries, and plan to achieve valuation at $18 billion in the next 3-4 years at the time of public offering.

Now Indian UNICORN startups are in focus to become listed in the national stock exchanges in the next 2-3 years. The next round is of technology-based Indian UNICORN startups to become as public listed companies.

Co-working Market Overview

The potential market size of co-working across India is expected to be 13.5 million users by 2020 about half of which will be from enterprises, which are expected to take up 10.3 million seats. Freelancers and Small & Medium Enterprises (SMEs) are expected to contribute 1.5 million users worth of demand, while it is anticipated that startups will demand up to 100,000 seats by 2020.

A report further indicates that the top six cities will require an estimated 5 million seats in co-working spaces, 8.5 million of the projected demand will be in Tier 2 and 3 cities.

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