Co-working leader EFC sets ambitious goal of 60,000 seats amidst successful fundraising

EFC India, a co-working spaces firm, is strategically exploring avenues to raise funds for expansion, eyeing a capacity increase to 60,000 seats by the fiscal year-end. The company, having recently secured Rs 90 crore in a fundraising round through preferential issues, aims to leverage various options, including a Follow-on Public Offer (FPO), to fund its ambitious growth plans. The CEO, Umeash Sahhaaii, emphasized the company's recent achievements, having grown from around Rs 12 crore in FY19 to Rs 104 crore in FY23, weathering challenges, including those posed by the COVID-19 pandemic.
EFC, operational since 2012, covers office infrastructure, co-working spaces, and office design segments. Its co-working brand, Sprint, and the EFC brand for managed workspaces have played a significant role in its market presence. The company, having undergone a reverse merger and listing on BSE in the last fiscal, is poised for a substantial expansion phase.
Sahhaaii detailed their revenue model, indicating that 95% of their revenues are derived from rental income. The company follows an anchor concept, where large-scale clients constitute 80% of the facility's occupancy under 3-5-year agreements. The remaining 20% is offered to smaller clients, including co-working spaces. EFC's robust financial performance in Q1 FY24, with Rs 57.04 crore in total revenues and Rs 3.17 crore in net profit on a consolidated basis, underscores its resilience and growth trajectory.
EFC's recent move of signing around 5 lakh square feet of office spaces in Pune, Noida, Hyderabad, and Kolkata underscores its expansion strategy. The company, currently operating in eight cities across seven states, boasts over 36 centres, aggregating to 1.5 million-plus square feet of area and 25,000-plus seats.
In a bid to fortify its financial position and support its expansion drive, EFC is actively considering FPOs among other funding options. The company's agility in adapting to the evolving demands of corporate India and the significant jump in revenues, particularly amid the challenges posed by the pandemic, demonstrates its market resilience and strategic approach.
The Indian office market, according to a recent report by real estate consultant Colliers India, is experiencing changing winds with gross leasing expected to reach 40-45 million square feet in 2023 across six major cities. This projection reflects a slight decrease from the previous year's 50.3 million square feet. During H1 2023, gross leasing stood at 24.7 million square feet, and the second half anticipates demand to range between 15.3-20.3 million square feet.
As EFC navigates the dynamic office market, its focus on strategic expansion, diverse revenue streams, and financial prudence positions it favourably amid evolving industry dynamics. The company's exploration of diverse funding options showcases its commitment to ensuring a robust financial foundation as it continues to play a significant role in India's evolving co-working landscape.

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Co-working leader EFC sets ambitious goal of 60,000 seats amidst successful fundraising

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