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Sheetal Vanwari, CMO, Awfis Space Solutions tells us about the growth achieved by the co-working space, growth drivers, expansion into Tier II cities and more
How has the year been for Awfis overall? What has been the growth? Key revenue drivers?
We have had an incredible year, marked by strong growth and expansion, As of December 2024, we are present in 18 cities, offering 214 centers (Operational & Fit-out) and 142,000+ seats, serving more than 3,000 clients. Our financial performance has been exceptional, with 44% year-over-year revenue growth, reaching ?318 crores for the quarter. During the quarter, our co-working and Allied Services segment grew by 52% to ?243 crores, contributing 77% to our total revenue. Meanwhile, our construction fit-out projects, including our design and build business, saw robust growth of 35%, reaching ?73 crores and accounting for the remaining 23% of our revenue.
Our strong market presence is reinforced by a well-structured and multi-tiered product portfolio which is designed to meet diverse client needs. This differentiated model, combined with our integrated platform, creates multiple upselling opportunities, further enhancing our revenue potential. Our asset-light growth strategy remains a key driver, with 67% of seat additions under the Managed Office (MA) model, enabling us to scale efficiently while maximising returns on investment. Expanding beyond traditional markets, we have strengthened our presence in nine Tier-II cities, making us the most widely established flex space provider in these regions.
Currently, what is your occupancy rate and what factors are driving growth?
Our occupancy has reached 73% as of December 2024, while centres operational for over a year achieved 84% reflecting strong demand and long-term client commitment. Bengaluru (37), Mumbai (32), Hyderabad (27), and Pune (26) remain our largest metro markets, housing 122 centers collectively.
Growth is driven by the adoption of hybrid work models, the expansion of Global Capability Centers (GCCs) in Tier-II cities, infrastructure advancements, and government-backed startup initiatives. Expanding our footprint, we recently launched our first center in Lucknow, a city poised for innovation and investment.
You are present in metros, Tier I, and even key Tier II cities. Are the consumer needs different across these geographies?
As a leading flex workspace provider, we understand that consumer needs vary across metros, Tier I, and key Tier II cities due to differences in business ecosystems, infrastructure, and work culture. To cater to these diverse demands, we initiated the process of understanding consumer behaviour across India by leveraging our presence across 18 cities in the country and published industry reports like Awfis Unwind and the GenFlex Report.
With Awfis Unwind, we transform our workspaces into vibrant social hubs, offering events and engagement activities that help professionals unwind—essential to destress in metros and community building in Tier II cities. Our GenFlex Report provides deep insights into evolving workspace preferences, highlighting the growing demand for hybrid work models in metros and affordable, high-quality flex space solutions in smaller cities. Through these initiatives, we remain committed to delivering tailored, flexible, and hyperlocal workspace solutions that meet the unique needs of professionals and businesses across different geographies.
What is the ethos of your marketing strategy?
Our marketing strategy is built on customer-centricity, with a strong focus on delivering value, customer satisfaction, and exceptional experiences. We prioritise our customers' needs, desires, and challenges, ensuring they are at the heart of our marketing efforts.
Our media mix reflects this ethos through a multi-channel approach that blends digital, social, and offline tactics. Beyond offering workspace solutions, we actively foster networking and collaborations, showcasing the strength of our community. For all our new centre launches, we do a pre-launch and launch campaign through various marketing channels, announcing the launch, highlighting its space offerings, amenities, services, location, and its advantages. To achieve this, we integrate both Direct-to-Consumer (D2C) and Business-to-Business (B2B) strategies, engaging potential customers across multiple touchpoints. Our D2C approach strengthens our online presence through social media, content marketing, and influencer collaborations. We also leverage public relations, events, and strategic partnerships to expand our reach and build brand loyalty. By connecting with clients on a personal level, we effectively communicate our value proposition and drive meaningful engagement.
Content plays a key part of your communication, and you have the Awfis Insider series. What was the genesis of this series?
Content has always been a cornerstone of our communication strategy, and the Awfis Insider series was born out of a larger podcast initiative aimed at engaging diverse audience segments. We developed multiple formats— ThoughtCast to delve into real estate trends and leadership, Awfis Insider to understand the young workforce, and Workplace Insights Hub (WIH) where we interviewed leaders from our vibrant community to discover the modern world of work and share valuable insights. Now, we are excited to launch our new video podcast series, The Corner Awfis, where we feature leaders and founders from diverse industries who have shaped corporate India. This corporate podcast is our latest addition to this content ecosystem.
Do take us through the customer journey, right from the time of first query to lead generation to acquisition by finalising the number of seats?
At Awfis Space Solutions, we ensure a seamless and efficient customer journey across our diverse offerings, including Coworking Spaces (Day Pass, Meeting Rooms, Cabins, Fixed Desks), Design & Build (Consulting, Planning, Designing), and Managed Offices (End-to-End Office Solutions). The journey begins with Lead Generation & Engagement, where leads come from various sources such as our website, referrals, brokers, and corporate outreach. We focus on quick responses, lead qualifications, and personalised engagement to understand client requirements. In the Discovery & Proposal phase, potential clients are provided site visits or virtual tours to explore workspace options, followed by customised solutions and flexible pricing models tailored to their needs. The Negotiation & Closure stage involves transparent commercial discussions, tailored contracts, and space customisations if required, ensuring a seamless onboarding experience. To successfully seal the deal, Awfis emphasises personalised solutions aligned with client needs, speed and agility in responses, tours, and proposals, as well as flexible and scalable workspace models that grow with businesses. Our strong value proposition, which includes premium locations and comprehensive support services, further enhances our appeal. We take a customer-driven approach, fostering long-term partnerships built on trust and reliability. At Awfis, we don’t just offer workspaces—we create dynamic environments that drive productivity, collaboration, and growth.
Where do you see the growth coming from in the future?
The future of flex spaces is set for significant growth, driven by evolving business needs and technological advancements. As companies prioritise agility, the demand for flexible solutions that enable seamless scaling is stronger than ever. The rise of hybrid work, remote setups, and satellite offices over centralised headquarters is further accelerating this shift. At the same time, the expansion of flex spaces into Tier-2 and Tier-3 cities is making these solutions more accessible, fueling industry growth. Technology is playing a pivotal role in this transformation, with smart building innovations and enhanced connectivity redefining the user experience. The increasing demand for managed office spaces highlights the need for customised, tech-enabled solutions, while sustainability is becoming a major priority as businesses seek environmentally responsible workspaces. Beyond the tech sector, industries such as BFSI and manufacturing are embracing flex spaces, driving further market expansion. As these trends continue to reshape the industry, we remain committed to delivering innovative, flexible, and efficient workspace solutions that meet the evolving needs of businesses.
What are your expansion plans?
We are well on track to achieving our target of 135,000 seats by March 2025 including centres under fit-out and Letter of Intent (LOI) stages, our total capacity now exceeds 160,000 seats across 237 centers, spanning an impressive 8.0 million square feet. The demand for flexible workspaces in Tier-II cities has surged post-pandemic. While Tier-I cities continue to drive 80-85% of commercial real estate demand, there is a clear shift as industries like e-commerce, quick commerce, IT services, and Global Capability Centers (GCCs) increasingly explore Tier-II cities for talent and expansion. Awfis has been at the forefront of this movement, being the first to establish a presence in these high potential markets. We firmly believe that India’s journey to a $5–$10 trillion economy will be shaped in these cities. In line with this vision, we are strengthening our presence further by expanding into Lucknow. Since December 2023, our footprint in Tier-II cities has grown by 29%, increasing from 17 to 22 centers, reaffirming our commitment to fueling growth in emerging markets.
Looking ahead, what are the key priorities for the company?
We are poised for continued growth and momentum and are well positioned for sustained expansion. We will continue to expand our network in micro-markets enabling local businesses to thrive and provide access to state-of-the-art office infrastructure. As the first listed flex space company, we have already paved the way for other industry players to enter the market and position flex space as not just the future of CRE and key enabler for boosting the start-up ecosystem. With a clear roadmap and strategic expansion plans, we're confident in maintaining our leadership in the flexible workspace segment.
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