Real Estate

Simpliwork Offices to invest ₹650 crore by 2023

Our Bureau Bengaluru | Updated on November 25, 2021

Kunal Walia, CEO & Founder, Simpliwork Offices

Outsourced-office space company will capitalise on accelerated demand for flexible enterprise spaces

One of India’s leading outsourced office partner, Simpliwork Offices, which is partnered with Salarpuria Sattva Group, said on Thursday that it continues to witness steep growth in demand as employees return to office and businesses ramp up hiring. Therefore, the company has earmarked an investment of ₹650 crore over the next two years to capitalise on the accelerated market demand for flexible enterprise spaces following the pandemic, it said in a release.

5X growth in turnover

Despite global uncertainties, Simpliwork said that it witnessed a five-fold growth in turnover in FY21 with a revenue run rate of ₹300 crore and a committed order book of close to ₹1,000 crore. Currently, the Bengaluru-based company said that it is in talks with prospective investors to raise funds to further expand its geographical footprint. They plan to double inventory to 6 million sq ft by the end of 2023.

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Simpliwork said that it achieved profitability in FY22 and continues to enjoy healthy EBIDTA margins. The company’s business proposition is tailored for large to very large enterprise customers that are looking for flexible workspaces in Grade ‘A’ buildings. For FY22, Simpliwork is estimating top-line revenues of ₹450-500 crore with net positive EBIDTA.

Demand for flexi-workspaces

Kunal Walia, CEO & Founder, Simpliwork Offices, said, “Our business model was uniquely positioned to survive the downturn caused by the pandemic last year. We are currently witnessing a significant up-tick in demand for flexible workspaces as companies continue to show reluctance towards capex spends on non-core activities. We are currently profitable and are looking to raise funds specifically to capture increasing market share in the flexible workspace segment, along with geographic expansion. Simpliwork entered both Mumbai and Chennai this year.”

Also see: Executives and employees differ on the future of work: Report

The Indian market has grown by more than 100 per cent as compared to the pre-Covid period. Two years ago, co-working and flexible workspace management companies made up around 7 per cent of overall leasing in India but today, they account for 18-20 per cent of all corporate leasing in the country, Simpliwork claimed.

Simpliwork Offices clients’ includes Mastercard, Rolls Royce, Siemens Healthcare, SBI Cards, Sterlite Power, OLX, GlobalData and Lufthansa among others. Currently, it has 27 centres in India with Hyderabad being its biggest market and Chennai the most recent one. The company is also present in Bengaluru, Mumbai, Pune, Delhi and Gurgaon.

Published on November 25, 2021

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