Awfis intends to raise $100-125 million in a landmark IPO
Awfis Space Solutions Private Ltd, with significant backing from notable investors such as ChrysCapital and Peak XV Partners (formerly Sequoia India), has taken steps to launch an initial public offering (IPO) in 2024. This marks the first attempt by a co-working space provider to go public on domestic stock exchanges, according to several industry insiders familiar with the matter. “Awfis is planning to raise around $100 mn to $125mn via the proposed listing, though the quantum hasn’t been finalized yet and may vary later. ICICI Securities, IIFL Capital & Axis Capital have been mandated as advisors", according to one of the spokespersons from the above companies.
Awfis, headquartered in Chennai, is a competitor of firms like WeWork, Smartworks, and Tablespace. Following the COVID-19 pandemic, the co-working segment has experienced a strong recovery, with a significant portion of the demand coming from the IT sector. "Work on the IPO had begun earlier, and the DRHP may be filed with market regulator Sebi in a month’s time. A launch is targeted in 2024 based on market conditions".
“The plan is for the IPO to be a combination of primary and secondary issuance of shares which will provide an exit window to the investors as well as help to mop up growth capital to expand presence to other locations. The novelty factor is high in this deal." All the individuals mentioned in the spoke anonymously to Sources. An email query sent to Awfis regarding the IPO preparations remained unanswered, and ICICI Securities declined to comment. Moneycontrol did not receive an immediate response from IIFL Capital and Axis Capital.
The Managing Partner of ChrysCapital, India’s oldest and largest home-grown private equity firm, said, "For us, our job is just to help our companies, whichever company feels they want to be public, to help them prepare for it. But I would imagine in the next two years, you should see more companies from the ChrysCapital portfolio go public".
Prateek Jhawar, MD and Head of Infrastructure & Real Assets, Avendus Capital, says, Post-pandemic, the trend of organizations in India adopting hybrid working models and shifting from traditional offices to coworking and managed offices for long-term commitments is what sets us apart from the global markets, where demand is dominated more by startups and individuals.“With more than 10 million square feet or 25% of all new office leasing happening in flex workspaces, we believe this is just the start of the bull run of the segment in India, and at least 2-3 players would become IPO-ready in the next 1-2 years as their business matures and starts generating stable cash flows”, Jhawar adds.
As of May 2023, Awfis had secured $90 million in funding from investors such as ChrysCapital, Sequoia India, Innoven Capital, and Link Investments. The company was founded in April 2015 by Amit Ramani and has transformed into a tech-enabled workspace solutions platform, offering a range of products to meet various work requirements for freelancers, startups, SMEs, large corporates, and MNCs. Awfis operates in 150 centers across 17 cities, providing 88,000 seats to over 1,500 companies, making it India’s largest shared space network.
Awfis, headquartered in Chennai, is a competitor of firms like WeWork, Smartworks, and Tablespace. Following the COVID-19 pandemic, the co-working segment has experienced a strong recovery, with a significant portion of the demand coming from the IT sector. "Work on the IPO had begun earlier, and the DRHP may be filed with market regulator Sebi in a month’s time. A launch is targeted in 2024 based on market conditions".
“The plan is for the IPO to be a combination of primary and secondary issuance of shares which will provide an exit window to the investors as well as help to mop up growth capital to expand presence to other locations. The novelty factor is high in this deal." All the individuals mentioned in the spoke anonymously to Sources. An email query sent to Awfis regarding the IPO preparations remained unanswered, and ICICI Securities declined to comment. Moneycontrol did not receive an immediate response from IIFL Capital and Axis Capital.
The Managing Partner of ChrysCapital, India’s oldest and largest home-grown private equity firm, said, "For us, our job is just to help our companies, whichever company feels they want to be public, to help them prepare for it. But I would imagine in the next two years, you should see more companies from the ChrysCapital portfolio go public".
Prateek Jhawar, MD and Head of Infrastructure & Real Assets, Avendus Capital, says, Post-pandemic, the trend of organizations in India adopting hybrid working models and shifting from traditional offices to coworking and managed offices for long-term commitments is what sets us apart from the global markets, where demand is dominated more by startups and individuals.“With more than 10 million square feet or 25% of all new office leasing happening in flex workspaces, we believe this is just the start of the bull run of the segment in India, and at least 2-3 players would become IPO-ready in the next 1-2 years as their business matures and starts generating stable cash flows”, Jhawar adds.
As of May 2023, Awfis had secured $90 million in funding from investors such as ChrysCapital, Sequoia India, Innoven Capital, and Link Investments. The company was founded in April 2015 by Amit Ramani and has transformed into a tech-enabled workspace solutions platform, offering a range of products to meet various work requirements for freelancers, startups, SMEs, large corporates, and MNCs. Awfis operates in 150 centers across 17 cities, providing 88,000 seats to over 1,500 companies, making it India’s largest shared space network.
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