Awfis To Sell Awfis Care To SMS Integrated Facility For INR 27.5 Cr

SUMMARY

Awfis is selling its facility management business ‘Awfis Care’ to SMS Integrated Facility Services for INR 27.5 Cr on a slump sales basis

Awfis said that the sale will help it focus on its core business of flexible workspace market by reducing administrative and compliance requirements

Mumbai-based SMS Integrated Facility Services claims to serve over 750 clients at 2,650 sites across India, offering a range of soft and technical services

Recently listed coworking space provider Awfis is selling its facility management business ‘Awfis Care’ to SMS Integrated Facility Services for INR 27.5 Cr ($3.2 Mn) on a slump sales basis.

In an exchange filing, Awfis said it has entered into a business transfer agreement with SMS Integrated Facility for the sale, which is expected to be completed in 120 days.

Awfis said that the sale will help it focus on its core business of flexible workspace market by reducing administrative and compliance requirements. Further, the transaction is expected to be cash flow accretive, allowing strategic reinvestments in growth initiatives, including network expansion and technology integration.

Via Awfis Care, Awfis provides technical maintenance and operation solutions for its workspaces. It also helps businesses in workspace management by providing an online admin dashboard, an employee app, smart access system, among others. The vertical’s revenue stood at INR 23.94 Cr in the financial year 2023-24 (FY24) and accounted for 2.82% of Awfis’ total revenue.

Awfis’ core business is to provide coworking facilities to startups, SMEs, large corporates, and MNCs. The startup, founded in 2015, has expanded its presence over the years and currently has operational presence in 17 cities across India with 181 total centres. It plans to further expand across India by adding 40,000 new seats in FY25, taking the total seat count to 1,35,000.

Meanwhile, SMS Integrated Facility has been in the facilities management space since its inception in 1968. The Mumbai-based facility management company claims to serve over 750 clients at 2,650 sites across India, offering a range of soft and technical services.

“By partnering with a specialist like SMS, we can effectively allocate our capital and management resources toward key priorities, such as strengthening our position in the flexible workspace market, expanding our network, and driving innovation in customer experience and technology integration,” Awfis managing director and chairman Amit Ramani said.

Awfis claims to be India’s largest coworking space provider, and has been on a portfolio expansion spree of late. Most recently, the startup announced a partnership with Nyati Group to set up an additional 3 Lakh square feet of Grade-A workspace in Pune. Besides, it also announced the launch of two new centres in Bengaluru last month.

In its annual report for FY24, Ramani said that the startup is committed to “enhance its product and service offerings, with a particular emphasis on our transformative services— Awfis Transform and Awfis Care”.

“Awfis Care provides seamless property and facility management, ensuring that our clients can focus on their core business while we take care of their workspace needs,” Ramani added.

Shares of Awfis ended today’s trading session 2.05% lower at INR 756.65 on the BSE.