Delhi-based co-working space provider Awfis has raised Rs 40 crore ($5.3 million) in fresh funding by issuing debentures and preference shares, per media reports.
Of the total corpus, the majority of Rs 39.4 crore has been raised by the company as debt from Mauritius-based Bisque Limited, while the remaining amount has come in from Delhi-based Link Investment Trust.
What’s significant is the funding has come in at a time when the coworking sector in India and across the world is staring at huge losses in the wake of COVID-19 pandemic.
The past two months have changed the contours of the co-working space in India, with the lockdown prompting corporates to adopt a ‘work-from-home’ policy across diverse sectors.
This has challenged the very idea of community that co-working spaces have been built upon. However, experts tracking the sector say that the demand for collaborative workspaces remains high in India in the years to come.
The current investment signals the long-term approach that investors are taking and it is a part of Awfis’s ongoing Series D round that had begun mid last year. In August, the company had raised as much as $30 million, led by homegrown private equity giant ChrysCapital.
So far, Awfis has garnered over $55 million through equity and debt.
Before the impact of COVID-19 became prominent in India, the company had reportedly indicated its plans to set up centres in smaller cities such as Kochi, Ahmedabad and Indore.
The share of co-working in total office leasing spiked stood at 14 per cent in 2019 vis-a-vis that of 8 per cent in 2018, according to estimates of property consultant JLL India.