Peak XV-Backed Awfis Files DRHP, Plans To Raise INR 160 Cr Via Fresh Share Issue

SUMMARY

Awfis’ IPO offer includes a fresh issue of shares of INR 160 Cr and an offer-for-sale (OFS) component of 10.02 Mn shares

Peak XV Partners, which holds 22.86% stake in the company, will sell 5.01 Mn shares during the IPO

In the first three months of FY24, the coworking services provider reported an operating revenue of INR 187.7 Cr, while its loss stood at INR 8.56 Cr

Coworking space provider Awfis, which counts Peak XV Partners (erstwhile Sequoia Capital India and Southeast Asia) as among marquee investors, has filed its draft red herring prospectus (DRHP) with the capital markets regulator Securities and Exchange Board of India (SEBI).

Its IPO comprises a fresh issue of INR 160 Cr and an offer-for-sale component of up to 1 Cr shares.

The OFS component includes the offer for sale of up to 5.01 Mn equity shares by Peak XV, up to 4.94 equity shares by Bisque Limited, and up to 75,174 equity shares by Link Investment Trust.

The startup will utilise INR 52.5 Cr from the net proceeds towards setting up new coworking setups. The startup will open 15 new centers under the ‘Awfis’ format in Fiscal 2025, in Mumbai, Bengaluru, the National Capital Region of Delhi, Hyderabad, Pune, Chennai, Kolkata, Ahmedabad, Lucknow, Bhubaneswar and Jaipur. The startup has estimated that it will spend INR 3.5 Cr to open a centre.

The rest of the net proceeds which amounts to INR 68 Cr will be utilised as a working capital.

Founded in 2015 by Amit Ramani, Awfis has evolved from just being a coworking network to a tech-enabled workspace solutions platform, catering to freelancers, startups, SMEs, large corporates, and MNCs. To date, the startup has raised nearly $90 Mn across multiple rounds. It directly competes against the likes of WeWork, 91Springboard, OYO’s Innov8, BHive, among others.

As of June 30, 2023, the startup had 121 operational centres across 16 Indian cities, with a total of 70,242 operational seats. It also claims to have had 2,139 clients by the same time.

ICICI Securities, Axis Capital, IIFL Securities and Emkay Global Financial Services are the book runners to the issue.

Awfis reported revenue of INR 545.28 Cr in FY23, compared to Rs 257.05 Cr a year ago. Its net loss declined slightly to INR 46.64 Cr in FY23. In the first three months of FY24, the coworking services provider reported an operating revenue of INR 187.7 Cr, while its loss stood at INR 8.56 Cr.