Awfis records positive EBITDA and Rs 257 Cr revenue in FY22
- ByStartupStory | March 25, 2023
Awfis, a co-working solutions provider, had planned to go public this year but due to difficult market conditions, the timeline has been extended. However, this delay may turn out to be a wise decision if the company achieves its target revenue of Rs 600 crore for FY23. Awfis recorded a growth of 44.1% to Rs 257.04 crore during FY22, according to the consolidated financial statements filed with the Registrar of Companies.
The exact figures for FY23 will only be revealed once the company submits its financial statements for the current fiscal year, but Awfis, which is backed by Sequoia, saw its scale increase by 44.1% to Rs 257.04 crore during FY22, according to consolidated financial statements filed with the Registrar of Companies.
Awfis is a Delhi-based provider of workspace solutions for freelancers to startups, SMEs, large and multinational corporations. The company’s income from co-working services was its sole source of revenue in the last fiscal. Awfis claims to have co-working spaces across over 150 centers and 88,000 seats across 15 cities, making it a significant player in the co-working industry. In addition to income from co-working services, the company also earned some income from interest on fixed deposits, which decreased by 42.2% to Rs 21.77 crore in FY22.
Awfis, with its asset-heavy business model, faced high depreciation and amortization costs, making up 29.3% of its total expenditure. This expense increased 13.4% to Rs 98.43 crore in the previous fiscal year. The employee benefit expense, which accounted for 16.1% of the total cost, skyrocketed by 70.1% to Rs 54.15 crore in FY22 from Rs 31.83 crore in FY21.
The company’s non-current liabilities amounted to Rs 536.54 crore as of 31st March 2022, resulting in finance costs (interest expenses) of Rs 48.71 crore in the last fiscal year. Rent and repair costs also increased by 18.6% to Rs 37.27 crore in the previous fiscal year. Additionally, Awfis incurred Rs 41.86 crore on subcontracting costs, driving its overall expenditure up by 29.8% to Rs 335.87 crore in FY22 from Rs 258.66 crore in FY21.
Awfis, with its asset-heavy model, saw a 34% surge in losses to Rs 57.15 crore in FY22 from Rs 42.64 crore in FY21. However, the exclusion of depreciation/amortization and finance costs showed a marginal drop in EBITDA to Rs 89.99 crore in the last fiscal year as compared to Rs 90.74 crore in FY21. The Delhi-based co-working company’s high debt is in line with its contrarian, asset-heavy approach to the market. A successful FY23, as promised, could result in a successful IPO. However, rising interest rates could significantly impact profits if the company doesn’t go public soon. Keep an eye on Awfis to see how it performs.
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