IPO-Bound DevX Posts INR 44 Lakh Profit In FY24

IPO-bound coworking space provider DevX (Dev Accelerator Ltd) turned profitable in the financial year 2023-24 (FY24). The startup registered a net profit of INR 43.7 Lakh in FY24 as against a net loss of INR 12.83 Cr in the previous fiscal, according to DevX’s draft red herring prospectus (DRHP). 

The startup turned profitable on the back of a significant increase in its revenue operations. Operating revenue zoomed 55% to INR 108.08 Cr during the year under review from INR 69.91 Cr in the previous fiscal year. 

Including other income, total income stood at INR 110.73 Cr as against INR 71.36 Cr in FY23.

DevX, which is a subsidiary of listed IT company Dev IT, filed its IPO papers on September 30. Its IPO will comprise solely of a fresh issue of 2.47 Cr equity shares. The shares will be listed on the NSE and the BSE. As per reports, DevX is looking to raise INR 125 Cr from the public issue. 

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

It operates coworking spaces in 12 cities, including Delhi NCR, Jaipur, Mumbai, Indore, Ahmedabad, among others. It counts the likes of Zomato, WhiteOak, Tim Hortons, Hitachi, Darwinbox, among others, as its clients. 

DevX plans to use the proceeds from the IPO 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. 

Where Did DevX Spend?

The Ahmedabad-based coworking space provider’s total expenses rose 37% to INR 119.50 Cr in FY24 from INR 87.49 Cr in the previous fiscal year. Here’s a breakdown of the expenses: 

Depreciation & Amortisation: This was the biggest  expense for the startup, with the cost under this head jumping 50% to INR 45 Cr from INR 30 Cr in FY23. 

Cost Of Goods & Services: DevX’s spending under this head declined 15% to INR 20.22 Cr from INR 23.75 Cr in FY23. 

Finance Costs: The startup’s spending in this bucket increased 79% to INR 31 Cr in FY24 from INR 17.28 Cr in FY23.

Employee Benefit Expenses: Employee costs rose 12% to INR 7.53 Cr from INR 6.74 Cr in FY23. Employee costs comprise salaries and wages, gratuity, PF and other expenses.

Other Expenses: The startup’s other expenses, which included rent, legal, repair, postage and telephone expenses, among others, went up 64% to INR 15.74 Cr from INR 9.61 Cr in the previous fiscal year. 

The startup’s bid to get listed comes at a time when a number of coworking space providers are making a beeline to the bourses. Besides DevX, Smartworks also filed its DRHP with SEBI earlier in the year. 

Meanwhile, Peak XV Partners-backed Awfis made its public market debut in May this year, listing on the BSE at a premium of 12.8% to the issue price. Since listing, the startup’s share price has surged over 50%.

Last month, Inc42 exclusively reported that IndiQube has also initiated its preparations for IPO. 

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.