IPO-Bound DevX Sees Profit Surge 3.9X In FY25

IPO-bound coworking space provider Dev Accelerator (DevX) reported its net profit rising 286% to INR 1.7 Cr in the year ended March 2025 (FY25) from INR 44 Lakh in FY24.

The company’s operating revenue rose 47% to INR 158.8 Cr during the year under review from INR 108 Cr in FY24.

The company largely earns from coworking and managed office spaces, payroll and facility management services, which together contributed the bulk of its topline. Including other income of INR 19 Cr, DevX’s total income stood at INR 177.8 Cr in FY25, up 60.6% from INR 110.7 Cr in FY24.

Meanwhile, the rise in expenses nearly matched the growth in revenue. Total expenses grew 46.5% to INR 175.1 Cr in FY25 from INR 119.5 Cr in the previous fiscal year.

DevX shared these figures in its RHP filed with SEBI today. The IPO will comprise only a fresh issue of 2.35 Cr shares, lower by 40 Lakh shares compared to what was proposed in the DRHP.

The company plans to use INR 73.1 Cr from the proceeds for fit-outs of new centres, while INR 35 Cr will go towards repayment or prepayment of certain borrowings.

Dissecting The Major Expenses

Founded in 2017 by Parth Shah, Rushit Shah and Umesh Uttamchandani as a coworking operator under the brand DevX, the startup has expanded into managed offices, payroll processing, and allied services. It positions itself as an integrated workspace solutions provider.

Currently, DevX provides workspace solutions to large businesses across 11 Indian cities including Mumbai, Pune, Noida and Rajkot.

Depreciation & Amortisation: This was the largest expense, rising 16% to INR 52.2 Cr in FY25 from INR 45 Cr in FY24.

Employee Benefit Expenses: Employee cost stood at INR 13.2 Cr, up 74.9% from INR 7.5 Cr in FY24.

Cost of Services: Expenses under this head more than doubled to INR 41.5 Cr in FY25 from INR 20.2 Cr in FY24.

Other Expenses: These rose to INR 23.6 Cr in FY25 from INR 15.7 Cr in FY24.

On all counts, DevX is the smallest player when compared to Awfis, Smartworks and IndiQube, the three other listed companies in this space. The revenue for each of these three towered over INR 1,000 Cr in FY25, with Smartworks topline surging to INR 1,300 Cr. However, Awfis is the only profitable company as of FY25.  

Meanwhile, the largest player in the space, WeWork India, is also in the process of going public at the moment. WeWork India’s IPO, which is only an offer for sale from existing investors, was approved in July. The coworking giant turned profitable in FY25, reporting a PAT of INR 128.2 Cr against a loss of INR 135.7 Cr in FY24 while its topline jumped 17% YoY INR 1,949.2 Cr.