Simpliwork Offices to invest Rs 650 crore by 2023

NEW DELHI: Bengaluru-based Simpliwork Offices, partnered with Salarpuria Sattva Group, plans to invest Rs 650 crore over the next two years to capitalise on the accelerated market demand for flexible enterprise spaces following the pandemic, the company said in a media release.

It claims to have witnessed run rate of Rs 300 crore and a committed order book of close to Rs 1,000 crore in FY21. For FY 2021-22, the company is estimating topline revenues of Rs 450-500 crore with net positive EBIDTA. They also plan to double the inventory to 6 million sq ft by the end of 2023.

Kunal Walia, CEO & founder, of the company said, “80% of our 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. 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.”

It also hopes to publicly list over the next 3-5 years. “Though we are only three years old, we already have a 20% share in the overall leasing market pie,” said Walia. “We are currently witnessing a significant uptick in demand for flexible workspaces as companies continue to show reluctance towards capex spends on non-core activities. The absolute spend in office spaces has gone up by 25-30% in the last few years, but we need to ensure that the return on investment (RoI) more than justifies these office spaces, as we go forward,” he added. The company delivered two flexible workspaces in 2020 i.e. a 6 lakh sq ft office space in Hyderabad and 4.5 lakh sq ft space in Gurugram. It entered both Mumbai and Chennai this year and aims to sign up their first international centre in H1 2022.