Awfis Space Solutions On Expansion Mode, On Track To Adding 40,000 Seats In FY25

Co-working space provider Awfis Space Solutions Ltd. is set to achieve its target of adding 40,000 seats in the current financial year by the September quarter. The company will soon achieve the target, Amit Ramani, chairman and managing director of Awfis Space Solutions, told NDTV Profit. He is "bullish" on the projected numbers.

The company aims to attain a total capacity of 1,35,000 seats by the end of fiscal 2025, backed by the expansions and partnership deals in the pipeline.   

“This year, our addition is going to be about 40,000 seats...from 95,000 seats in FY24 to about 1,35,000 in FY25. We are already at about 1,27,000 seats if I look at the under fit out and Letter of Intent signed. We are very bullish on the numbers we are projecting. In fact, we will soon achieve those by the end of second quarter itself,” Ramani said.

Last week, the company entered into a partnership with Pune-based realty firm, Nyati Group, for an additional three lakh square feet of Grade-A workspace. Awfis Space Solutions said after the tie-up, it had become the largest player under the Managed Aggregation Model.

Ramani noted that while the company had a presence across 17 cities, it was planning to increase the network of office spaces to three more cities across tier-1 and tier-2 segments.

“Today, we are in 60 micro markets across 17 cities. We will add another three cities so about 20 cities across tier-1 and tier-2 cities. We believe just like when you think of fast food, you think of McDonalds, when you think of work, you think of Awfis,” Ramani said.

According to Ramani, the company has added nearly 300 clients in the first quarter of fiscal 2025, with a total of 2,600 clients currently. He also added that the company had acquired nearly 3,000 clients in its mobility solutions business, under which clients can rent a meeting room for an hour or a seat for a day.

“I think the number of clients we had when FY24 ended was approximately 2,300, so we have added some 300-plus clients. In addition to these clients that are resident with us, we have 3,000 companies that use our mobility solutions. We have close to about 6,000 companies that use us in one format or the other,” Ramani said.

He noted that commercial and flexible real estate would reap the spin off benefit of India's economic growth, projected at 7% in the current fiscal by the World Bank.

“With the economy projected to do about 7% growth this year, I think that will in turn have commercial real estate growth and flex will grow. We have projected for flex to be about 100-plus million square feet, which is close to 10% of the total commercial real estate market by 2026,” Ramani said.

Ramani said that in the first quarter of fiscal 2025, the company posted a revenue of Rs 258 crore and its Earnings Before Interest Taxes Depreciation and Amortisation margins improved to 31%. The company also turned profitable in the first quarter with a net profit of Rs 3 crore.  

“About 30% growth is projected in FY25, and we will continue to improve our margin in terms of Ebitda and maintain our profitability,” Ramani said.