Awfis to expand to 0.6 million sq ft by end of 2022 across seven tier-2 cities

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Co-working company Awfis is expected to touch 0.6 mn sq. ft. by the end of the year after it expands to seven Tier 2 cities such as Jaipur, Indore and Bhubaneshwar and sets up more centres in existing cities such as Ahmedabad and Chandigarh.  This will translate to around Rs 100 crore of annual recurring revenue over the next one year, Amit Ramani, founder and CEO, Awfis told Moneycontrol.

“The expansion in flexible office spaces across cities is driven largely due to the hybrid work model. Flexibility and speed are driving even large occupiers to go into Tier 2 cities to source talent, and footprint of flexible office spaces in Tier 2 cities is expected to almost double this year,” he said.

The company, which is at 0.3 mn sq. ft. currently in 5 tier 2 cities is expecting to touch 0.6 mn sq. ft. by the end of the year. It plans to expand its footprint in Chandigarh, Ahmedabad, Jaipur, Indore and Bhubaneshwar where it is already operational.

In Indore, where it has a footprint of 75,000 sq ft, it intends to touch 125k sq ft. It has recently expanded to Jaipur where it has 100,000 sq ft. It entered Ahmedabad last year where it intends to touch 75,000 sq ft by the end of this year. Nagpur, Kochi and Lucknow will contribute 120,000 sq ft by end of the year.

With current visibility of Rs 35 crore Annual Revenue Run Rate from Tier 2, it’s expected to touch Rs 100 crore ARR from Tier 2 cities alone, over the next 12 months.

The co-working firm is currently in fit-outs and LoI (Letter of Intent) stage in Kochi and Lucknow, and plans to further expand into Chandigarh and Nagpur.

The co-working player is also planning an IPO by next year.

In all these cities, the tenant mix comprises large enterprises and start-ups. “Large enterprises take up 50 percent of the demand and the other 50 percent comprises mid-segment enterprises and start-ups,” he said.