Workspace Provider Smartworks Receives Rs 168 Crore Funding Led by Keppel Ltd

Flexible workspace provider Smartworks, based in Singapore, has secured Rs 168 crore (around $20.24 million) from a diverse array of investors. The funding round was led by Keppel Ltd, Ananta Capital Ventures Fund I, Plutus Capital, family trusts, and multiple high-net-worth individuals (HNIs). Previously, in 2019, the startup received $25 million from Singapore’s Keppel Land.

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“We appreciate our investors’ ongoing confidence in our capabilities and the integrated office experience and managed campus platform. The capital raised from our latest funding round will fuel our business expansion and operational enhancements, alongside covering general corporate expenses,” said Neetish Sarda, founder of Smartworks. The strategic injection of funds will empower Smartworks to strengthen its market presence and operational capabilities within India’s dynamic commercial real estate sector. Importantly, following this funding, Smartworks’ promoters maintain majority ownership of the company.

Founded in April 2016 by Neetish Sarda and Harsh Binani, Smartworks currently oversees more than 8 million square feet of office space. Operating across 40 locations in 14 cities, including Bengaluru, Kolkata, Delhi NCR, Mumbai, and Pune, the company serves a diverse portfolio of over 600 organizations, ranging from Forbes 2000/Fortune 500 companies to multinational corporations, unicorns, and soonicorns. Recently, Smartworks expanded its Pune presence by securing a 14-floor tower in Balewadi, set to accommodate 8,000 desks.

In the fiscal year 2024, Smartworks significantly expanded its operations by opening new facilities in key locations. These include Golf View Corporate Towers in Gurgaon, Logix Cyber Park in Noida, Amar Tech Center and 43EQ in Pune, and Olympia Pinnacle in Chennai. As of March 31, 2024, Smartworks has established a presence in 13 cities, boasting a portfolio of 41 centers covering 8 million square feet. The company plans to increase its flexible office space by 3-4 million square feet annually to meet the rising demand from both domestic and international businesses.

Keppel Ltd., a conglomerate headquartered in Singapore, has been a significant and longstanding investor in Smartworks since initiating their investment in 2019. To date, Keppel Ltd. has injected a total of $29 million into Smartworks. Louis Lim, CEO of Real Estate at Keppel Ltd., commented, “Since Keppel’s initial investment in 2019, Smartworks has emerged as India’s premier managed workspace platform. This investment underscores our enduring commitment to India’s commercial office market as we expand Keppel’s office portfolio in the country, supporting its rapid urbanization with our innovative urban space solutions.”

Smartworks plans to increase its office space to 30 million square feet before considering an initial public offering. With a client base of around 550 enterprises, including major companies like Google, Accenture, Persistent Systems, and Samsung, the company has shown impressive financial results. In FY23, Smartworks saw a significant 97.5% increase in revenue from operations, reaching Rs 711 crore compared to Rs 360 crore in FY22. However, alongside this growth, the company also recorded a 44.29% increase in losses, totaling Rs 101 crore in FY23, up from Rs 70 crore in the previous fiscal year.

Smartworks, a Singapore-based flexible workspace provider, secured Rs 168 crore from a diverse group of investors, led by Keppel Ltd and others. The funding will support Smartworks’ expansion and operational improvements. Founded in 2016, the company manages over 8 million sq ft across 40 locations in 14 cities, serving a range of organizations. After recent expansions and strategic moves to meet demand, Smartworks aims to grow its flexible office space by 3-4 million sq ft annually. Keppel Ltd’s continued long-term investment highlights Smartworks’ growth trajectory and market presence.