End-to-End Solutions and Robust Financials: EFC (India) sets co-working agenda

EFC (India), the only listed company in integrated serviced offices and co-working spaces, plans to triple its seat capacity from 32,000 to 92,000 by March 2026. Fuelled by robust institutional demand, EFC (I) aims to add approximately 60,000 seats over the next three years. Founder & CEO Umesh Sahay announced the ambitious expansion, capitalizing on India's status as the world's second-largest co-working market. Sahay emphasized on EFC's commitment to becoming a major industry player and said that the expansion will be financed through a combination of equity and debt. With enterprise solutions branded as EFC and co-working spaces as Sprint, the company operates across seven Indian cities, totalling over 1.5 million sq. ft. EFC (I) anticipates significant revenue growth, targeting about Rs. 400 crores and Rs. 1,000 crores by the close of FY 24 and FY26, respectively. This optimistic outlook aligns with industry estimates projecting India's flexible space industry to surpass 50 million square feet in 2023. Umesh Sahay emphasized the surging popularity of shared workspaces in the last six years, positioning India as a significant player in the global coworking arena. The company's strategic move aims to capitalize on the substantial opportunity within India's flexible office stock, estimated at 30-35 million sq. ft. The co-working landscape in India is dynamic, with approximately 71%, or 25 million sq. ft., attributed to large operators. Bengaluru and Delhi-NCR collectively represent over 50% of the flexible space stock, indicating regional concentration. As of September 30, 2023, EFC (I) operates 32,000 seats across seven cities, charging customers Rs 6,000 to Rs 10,000 per desk. Unlike competitors, EFC provides end-to-end solutions in office space management, guiding customers in property selection, negotiating with property owners, furnishing and designing spaces, and ongoing management and maintenance. The company's strategy focuses on cost optimization and margin protection, aiming for profitable growth. EFC (I) reported robust financials for the half-year ending September 30, 2023, with total revenue at Rs 155.98 crores, EBITDA at Rs 71.03 crores, and a net profit of Rs 14.25 crores. The company anticipates an annual addition of 1.5 million to 2 million sq. ft. of spaces, aligning with its growth trajectory. The company is proactively working towards achieving its expansion goals, evident in a recent regulatory filing scheduling a Board of Directors meeting on December 1, 2023. The meeting will address proposals for raising funds through equity shares, private placement, preferential placement, or other avenues. In summary, EFC (India)'s strategic expansion plan underscores its intent to dominate India's co-working sector, leveraging increasing demand and positioning itself for substantial revenue growth in the coming years.

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End-to-End Solutions and Robust Financials: EFC (India) sets co-working agenda

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