The company also aims to cross Rs 1,000 crore in annual revenue by the end of the next financial year, Ramani told ET.
“We were generating revenue of Rs 20 crore a month in March 2020 and currently we are almost touching Rs 45 crore a month,” said Ramani, who is also the CEO of the Indian company. “With the kind of expansion we are undergoing, we will touch Rs 60 crore in December. The target for mid-2023 is to generate Rs 80-85 crore of revenue a month, which will take us to Rs 1,200-1,300 crore of revenue for the year.”
Awfis operates about 78,000 seats in the country spread across 131 centres and 15 cities. By the year’s end, it will take the number of seats to 120,000 over 11 million sq ft in 18 cities and 200 centres.
“We will be a $100 million business in December. And we have been profitable since January 2022. We were profitable all along, but six months into Covid, especially after the second wave, we became a bit negative,” Ramani said.
The company has also reported strong growth in number of transactions and is selling about 5,000 seats a month, up from 1,000 a month before the Covid-19 outbreak.
“The demand has almost gone up 5x, and because the demand has gone higher, it also gives us the ability to continue to expand,” Ramani said. “In our model, the landlord is partnering with us, and the size of our centres is smaller. Almost 75% of our centres are in partnership with the landlord.”
According to Ramani, 50% of the company’s business comes from less than 100 seats, and in India, 65% of demand is for less than 10,000 sq ft, or 100 seats.
“It might not give you the biggest brands, but it gives you stability in the business, plus because you switch between B2C and B2B, you are able to manage it like an airline,” Ramani said. “The first 50% of demand is sold in bulk while the rest is sold to consumers, and that’s how you balance it out.”
Awfis will soon enter Nagpur and is also in the final stages of entering Kochi, Coimbatore and Lucknow.
“There is a move towards flex because 75% of the clients are openly saying that they want to use flex. Clients want to know what kind of facilities we are providing; is it hygienic enough, among other things, to make sure employees are working in a safe environment,” Ramani said.
In the 15-month period after the first lockdown, the company added 30,000 seats across 59 centres.
Awfis recently added over 1,500 seats at a coworking centre in River Side Tower, sector 125, Noida.
Awfis’ flex space adopts a digital-first approach and is equipped with modern amenities whilst maintaining social distancing, as mandated.