Co-working space major Awfis is on a rapid expansion mode and now plans to double its seats from 25,000 and 55 centres to 50,000 and 100 centres by June-July 2019.
The workspaces provider has grown from its first facility three years ago to 25,000 seats, about five months ahead of its its initial planned March 2019 date, and is now looking at doubling the number each passing year.
Amit Ramani, Chief Executive Officer, Awfis, said, “We have scaled up to 25,000 seats across 55 centres from 5,800 seats in 20 centres in July 2017. Our network, which includes start-ups, small and medium enterprises and leading corporate entities such as Hinduja, Vodafone, Mercedes Benz, and Hitachi, continues to expand.”
Earlier this year, Awfis had raised $20 million in Series C funding from Sequoia India and Innoven Capital and The Three Sisters: Institutional Office TTS:IO led by Radha Kapoor Khanna. with the $20 million Series B funding from Sequoia, the overall funding exceeds $50 million.
The co-working space as a category has been growing at a rapid pace as it is able to transform under-utilised real estate assets, including spaces in malls and some hospitality projects into efficient work spaces for entrepreneurs and corporate clients. This is a win-win situation for the real estate owner, for Awfis as also for those who take up space.
By 2020, Awfis is looking at 1,00,000 seats and taking this number up to 2,00,000 seats with 400 plus centres a year thereafter. The industry now estimated to be worth about $600 million is projected to grow to $2.2 billion by 2022, thereby offering immense scope for a services provider like Awfis.
The demand is coming not just from micro-markets in large metros and major cities but from a number of Tier II cities, where there is untapped demand.
Over the last 12 months a about 80 per cent of the business has come from small and medium enterprises and corporate entities. This trend is expected to continue, with start ups too accounting for a growing numbers, Ramani said.
Mentioning that they had raised more than $50 million, the funding available and the realty share model with owners will enable to to meet immediate expansion plans, Ramani said that “Last fiscal, we closed with a turnover of ₹55 crore and this fiscal is likely to see a turnover of ₹170 crore.”
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