Awfis, the Delhi-based shared office space provider, has raised fresh capital to expand its geographic presence.
It has raised $20 million from Sequoia India, Innoven Capital (joint venture between Temasek and Singapore based United Overseas Bank) and The Three Sisters: Institutional Office led by Radha Kapoor Khanna, daughter of Yes Bank managing director and CEO Rana Kapoor.
This is the third round of funding for Awfis, which now has a base of 25,000 seats across 55 centres with a member base of more than 15,000.
“The additional capital will aid us in expanding our footprint in India with more than 100 centres and more than 40,000 seats in the next 12 months,” said Amit Ramani founder and CEO of Awfis.
“The idea is to deepen our presence in some of the existing locations and foray into tier 2 cities. We are seeing a lot of demand from our existing clients who are also expanding their presence in these locations but at the same time looking at cost optimisation,” said Ramani.
Jaipur, Ahmedabad, Indore are among the cities in consideration for expansion.
The client list of Awfis includes the Hindujas, Vodafone, Mercedes Benz, the RBI, Hitachi, ShareKhan, Zomato and Practo.
Corporate houses can save around 20-25 per cent of their cost through the shared office space model instead of investing in their own office space. Typically these are treated as operating expenses on the part of companies in contrast to capital expense.
“IT/ITeS, financial services firms, media entities and others (including SMEs and startups) generally explore co-working solutions,” said Ramani adding that the demand for co-working spaces is on the rise with developers looking at transforming the under-utilised assets to provide affordable working space for entrepreneurs.
As part of its expansion, Awfis has inked lease deals of around 0.25 million square foot in the last couple months across Hyderabad, Calcutta, Chandigarh and Noida increasing its total real estate footprint to 1.5 million square feet. The company plans to maintain 60 per cent of its inventory in managed aggregation partnering with space owners with unutilised commercial space and the remaining 40 per cent under straight lease.