Coworking Space Provider DevX Files DRHP For IPO

Amid the ongoing IPO boom in India, Ahmedabad-based coworking space provider DevX (Dev Accelerator Ltd) has filed its draft red herring prospectus (DRHP) with market regulator Securities and Exchanges Board of India (SEBI). 

The startup’s proposed initial public offering (IPO) will consist solely of a fresh issue of 2.47 Cr equity shares. The shares will be listed on the NSE and the BSE. 

DevX plans to utilise the IPO proceeds to fuel its coworking space expansion. It will use the funds to pay for “fit-outs” in its new centres, security deposits, repayment and prepayment of certain borrowings, including redemption of non-convertible debentures (NCDs). Besides, it will also use the funds for general corporate purposes. 

The following is a breakdown on how the startup plans to use IPO proceeds:

• INR 68.95 Cr for fit outs and security deposits of new centres.
• INR 30 Cr for the repayment and prepayment of NCDs. 
• General corporate purposes.

Earlier this month, ET reported that DevX is eyeing raising INR 125 Cr from its public issue. 

The startup plans to open new coworking centres in Mumbai, Gurugram, Noida, Pune, Chennai, GIFT City, Ahmedabad, Vadodara, Rajkot, Surat, Goa and Jaipur in the next three years. 

As per the DRHP, DevX turned profitable in the fiscal year 2023-24 (FY24), registering a profit after tax (PAT) of INR 43.7 Lakh. In the previous fiscal, it reported a loss of INR 12.8 Cr. Revenue from operations stood at INR 108.08 Cr in FY24, up 55% from INR 69.91 Cr in FY23. 

Founded by Parth Shah, Rushit Shah and Umesh Uttamchandani in 2017, DevX provides coworking space solutions, managed office spaces, workspace solution offerings, among others.

It counts the likes of Zomato, WhiteOak, Tim Hortons, Hitachi, Darwinbox, among others, as its clients. 

The startup last raised $7 Mn (INR 58 Cr) in a mix of debt and equity in February this year. It is backed by Kalpesh Harakhchand Gala, Unmaj Corporation, Bidiwala Family Office, among others.

Currently, DevX operates over 25 centres in more than 10 Indian cities like Ahmedabad, Vadodara, Bengaluru, Delhi, Kochi, Surat, among others. 

With this, the coworking startup has become the third startup to eye public listing this year. While Awfis got listed earlier this year, Smartworks has also filed for an IPO. Besides, another coworking space startup IndiQube is also looking to take the IPO plunge soon. 

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