DevX Files for IPO, Aiming To Expand As India Flex Space Demand Skyrockets

The coworking sector in India is seeing a strong growth period amid surging demand for flex spaces. As India’s IPO landscape continues to flourish, Ahmedabad-based coworking space provider DevX (Dev Accelerator Ltd) has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). 

This significant move positions DevX as the third startup in the coworking sector to seek a public listing this year.

DevX’s proposed initial public offering (IPO) consists solely of a fresh issue of 2.47 crore equity shares. Upon completion, these shares will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). 

The company plans to utilize the funds to bolster its network of coworking spaces. Specifically, INR 68.95 crore will be earmarked for fit-outs and security deposits at new centers, INR 30 crore will be allocated for the repayment and prepayment of non-convertible debentures (NCDs), and the remaining capital will support general corporate purposes, according to Pune News.

DevX’s growth strategy includes launching new coworking centers across numerous Indian cities, such as Mumbai, Gurugram, Noida, Pune, Chennai, and several others, over the next three years. This IPO aligns with their ambitious nationwide expansion goals.

In a notable financial turnaround, DevX achieved profitability in the fiscal year 2023-24 (FY24) with a profit after tax (PAT) of INR 43.7 lakh, a substantial improvement from the INR 12.8 crore loss reported in the previous year. Operational revenues also saw a 55% increase, reaching INR 108.08 crore in FY24 from INR 69.91 crore in FY23.

Earlier this year, the company secured $7 million (INR 58 crore) in a mix of debt and equity financing from investors. Currently, DevX operates over 25 centers across more than 10 Indian cities, including major hubs like Ahmedabad, Vadodara, Bengaluru, Delhi, and Kochi. 

This expansion positions the company well in a coworking sector that is experiencing robust growth driven by increasing demand for flexible workspace solutions.

In the broader industry context, DevX’s filing follows Awfis’s successful IPO that saw its stock price jump by over 83% post-listing, heightening expectations for similar achievements by other major players. Furthermore, with Smartworks’ IPO filing and IndiQube’s anticipated market entry, competition within  India’s coworking space market is expected to intensify.