Smartworks, a flexible workspace provider, will launch its IPO on July 10, 2025, aiming to raise 445 crore rupee (US$52 million).

The offering, which closes on July 14, includes a fresh issue worth 445 crore rupee (US$52 million) and an OFS of 3.3 million shares.

This is lower than the earlier proposal of 550 crore rupee (US$64.3 million) and 6.759 million shares.

SEBI approved the IPO in December 2024.

As of June 30, 2025, Smartworks operates 10.08 million sq ft of flexible workspace across Tier 1 and Tier 2 Indian cities, including Bangalore, Hyderabad, and Mumbai.

It recorded a 20.80% CAGR in footprint growth from FY23 to FY25, adding 2.83 million sq ft.

Revenue rose from 711 crore rupee (US$83.2 million) in FY23 to 1,374 crore rupee (US$160.7 million) in FY25.

🔗 Source: The Economic Times

🧠 Food for thought

1️⃣ The flexible workspace industry is in a maturation phase with clear winners emerging

Smartworks’ IPO comes at a significant inflection point for the flexible workspace sector, with the industry having evolved substantially since its inception.

The coworking movement has transformed from niche beginnings with just 75 spaces in 2008 to a mainstream real estate solution that saw significant growth between 2011 and 2016 1.

This maturation is evident in the industry’s consolidation, with major players like WeWork facing bankruptcy (valuation plummeting from $47 billion to under $50 million) while resilient operators with sustainable business models continue to thrive 2.

Smartworks’ growth trajectory—from its founding to managing over 10 million square feet and achieving 20.8% CAGR between FY23-25—demonstrates how operators with sound financial fundamentals can succeed where others failed.

The contrast between Smartworks’ expansion and WeWork’s collapse highlights the industry’s transition from growth-at-all-costs to sustainable business models focused on profitability and stable occupancy rates.

2️⃣ Enterprise clients are reshaping flexible workspace economics