In this exclusive virtual conversation with StartupTalky, Harsh Binani, Co-founder of Smartworks, discusses the company’s IPO, its capital-efficient growth strategy, how they built strong enterprise relationships, and the future of India’s flex workspace industry.
From Startup to IPO: Smartworks’ Big Leap
Smartworks, one of India’s largest managed office space providers, is going public. The company aims to raise INR 445 crore, with the majority going toward expansion of its core business, leasing and operating large campuses across major Indian cities. Another significant portion, around INR 114 crore, will be used to repay high-cost debt, thereby boosting its margin profile and cash flows.
“We are today only getting started. This IPO is not a full stop, it’s just a comma,” says Harsh Binani.
Harsh Binani, Co-Founder of Smartworks in Conversation with Startuptalky
What Is Smartworks and How It Operates
For those unfamiliar, Smartworks offers a full-service, flexible office ecosystem. Unlike traditional co-working spaces, Smartworks operates on an asset-light model, leasing entire campuses, fully amenitizing them, and managing them end-to-end for large enterprises.
The company provides more than just desks and chairs. Think pan-India visitor management, parking, IT, housekeeping, pest control, F&B, and even yoga zones, all integrated under one offering.
Why Large Campuses?
Smartworks is known for its mega campuses, with four out of five centres being over 0.5 million sq. ft.
“People said we were crazy for signing campuses 10X the industry average. But today, it’s what allows us to scale efficiently and attract long-term enterprise clients.”
These campuses enable Smartworks to efficiently utilise space, create better amenities, and lower operational costs. It’s a strategy that helped the company stay profitable even during the pandemic.
Revenue, Growth, and Numbers
In just eight years (including two years of COVID), Smartworks has grown to 10 million sq. ft. across 15 cities, with over 2 lakh seats. Here’s a snapshot of the financial growth:
- Revenue (FY23-FY25): From INR 711 crore to INR 1370 crore
- EBITDA: 3.5x growth from INR 36 crore to INR 172 crore
- Cash Flow (FY25): INR 240 crore
“Revenue is vanity. Profit is reality. But cash flow is sanity.” highlighted Binani.
Smartworks takes around 3 years to recover CapEx on a campus, post which margins improve dramatically for the remaining lease period.
Who Are Their Clients?
Smartworks serves a diversified base of Indian and global companies, including:
- MNCs: Google, EY, Persistent
- Unicorns: Groww, Meesho
- Conglomerates: L&T, ITC, Asian Paints
“We serve everyone from Indian unicorns to global MNCs. Many clients grow with us and stick for the long term.”
About 42% of Smartworks’ client base is from IT/ITeS and engineering. The rest spans across consulting, consumer, manufacturing, and healthcare.
The Flex Space Market in India
India’s flexible workspace market is booming, with nearly 10% of commercial real estate now comprising flex space, a massive leap from 0% in 2017.
Binani believes all major players have helped expand the category, and there is still huge potential as India grows towards becoming a $30 trillion economy by 2047.
What Keeps Clients Coming Back?
Rather than targeting freelancers or SMEs, Smartworks focuses on large enterprises, offering:
- Long-term leasing
- Integrated, pan-India experience
- Competitive pricing (cost leadership)
“Managing offices is complex. We solve that completely under one roof, at a price that’s hard to match.”
They retain 86 out of every 100 seats sold, with retention being a key driver of their growth.
Looking Ahead
Smartworks is planning to scale further, with an eye on capital efficiency and execution. While the IPO marks a major milestone, Binani is clear:
“We’re not done. There’s still 25-30 years ahead. And the best part? We’re just warming up.”
🎥 Watch the full interview here: https://www.youtube.com/watch?v=sP9Wvtf5x5c
Learn more about:
- What the IPO unlocks for Smartworks
- How they built a 10 million sq. ft. business in 8 years
- Why they choose mega campuses
- Their approach to client retention and operations
- Where India’s flex space industry is headed and more