MUMBAI : AA91 Companions, an early-stage enterprise capitalist, is weighing a $40 million funding in co-working house startup Awfis, three individuals conscious of the matter mentioned.
Daughters of Rana Kapoor, founder and former managing director of Sure Financial institution, are amongst early traders in Awfis by means of their household workplaces, and can exit earlier than the A91 funding, one of many three individuals cited above mentioned on situation of anonymity.
“Each of them are exiting, and the method is on. As soon as the capitalization desk is realigned, A91 is prone to log in,” the individual cited above mentioned. The household workplace RAB Enterprises is co-owned by Alkesh Tandon, husband of Rakhee Rana Kapoor, daughter of Rana Kapoor, and DOIT City Ventures is owned by Bindu Rana Kapoor.
To date, Awfis has raised $90 million from traders, together with ChrysCapital, Sequoia India, Hyperlink Investments, and Innoven Capital.
Based in 2015 by Amit Ramani, Awfis is a co-working house supplier. The corporate claims to have 88,000 seats at 150 centres throughout 17 cities. It plans to extend it to 200 centres by mid-2023. It gives a desk in a value vary of ₹7,000-20,000 monthly.
A spokesperson for A91 didn’t reply to emails, whereas RAB and DOIT spokespersons couldn’t be reached for remark. An Awfis spokesperson denied A91 was contemplating an funding within the firm.
“The corporate is trying to make use of the capital to develop its presence throughout different Tier-I cities. The post-pandemic uptick in enterprise seems to be promising,” the second individual cited above mentioned.
“It may also search for inorganic progress alternatives because the flexi working house/co-working house trade is fragmented and is prone to get consolidated,” the individual added.
The rise in demand has swelled the flex workspace sector to 43 million sq. ft by Q1 FY23 from a mere 1.6 million sq. ft in 2017, based on Avendus Capital knowledge.
The Indian co-working house market has round 2500 centres operated by greater than 150 entities throughout the highest workplace markets. Awfis competes with corporations similar to WeWork, Smartworks, Indiqube, Simpliworks, CoWrks, Tablespace and 91Springboard.
“Traders are of the view that the present sectoral tailwinds are sturdy sufficient for this sector to develop exponentially within the subsequent 5 years and develop into shut to fifteen% of your entire business actual property market in India by FY27. Most PE funds imagine that the flex workspace sector is a high-return funding possibility in the long term, providing higher yields than the standard business actual property market,” Prateek Jhawar, government director and head of infrastructure and actual belongings, Avendus Capital, mentioned in a Mint column in December.
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Up to date: 27 Could 2023, 12:43 AM IST
Supply: Live Mint