New Delhi, Nov 25 (PTI) Realty firm Salarpuria Sattva’s co-promoted Simpliwork Offices on Thursday said the company will invest Rs 650 crore over the next two years to expand its business and meet rising demand of flexible workspace following the COVID-19 pandemic.
Salarpuria Sattva, one of the leading real estate firms in the country with large presence in office market, has 50 per cent stake in Bengaluru-based Simpliwork Offices.
Kunal Walia, founder and CEO of Simpliwork, holds the remaining stake.
“Simpliwork Offices continues to witness steep growth in demand as employees return to office and businesses ramp up hiring. The company has earmarked an investment of Rs 650 crores over the next two years to capitalise on the accelerated market demand for flexible enterprise spaces following the pandemic,” the company said in a statement.
Simpliwork Offices said it witnessed a five times growth in turnover in 2020-21 fiscal year, with a revenue run rate of Rs 300 crore and a committed order book of close to Rs 1,000 crore.
The company said it has achieved profitability in FY 2021-22, and continues to enjoy industry leading EBIDTA margins. It targets large enterprise customers that are looking for flexible workspaces in grade ‘A’ buildings.
The company said it is in talks with prospective investors to raise funds to further expand its geographical footprint. It plans to double the inventory to 6 million square feet by the end of 2023.
Earlier this year, Walia had told PTI that the company plans to raise USD 50-60 million as equity to expand business in India and enter into overseas markets, like Singapore.
For FY 2021-22, the company is estimating topline revenues of Rs 450-500 crore. This sets up the Simpliwork business to publicly list over the next 3-5 years.
“80% of Simpliwork’s business comes from very large enterprises with requirements of over 500 seats. The balance is from the same category of clients looking at upwards of 100 seats,” Kunal Walia said.
Recently, property consultant Colliers and co-working marketplace Qdesq in a joint report said that flex workspace stock will rise to 60.8 million square feet in metro and non-metro cities by 2023 from 43.8 million square feet at the end of the September quarter.
There were 3,410 flex centers as of Q3 of 2021 calendar year.
“The concept of flex spaces are fast evolving with the market having expanded beyond entrepreneurs and freelancers (its original demand drivers). By 2019, flex demand was led by established enterprises. With the onset of new developments, flex spaces are now offering customizable managed office solutions to occupiers,” Colliers India CEO Ramesh Nair said in the report.
Flex spaces offer corporates the flexibility to expand or alter their space as per their requirements, he added.
“In a volatile economic environment, companies are re-evaluating their cost economics and assessing the shift to hybrid work plans,” Nair said. PTI MJH MJH RUJ RUJ
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