Awfis Space Solutions has expanded its partnership with Nyati Group, securing an additional three lakh square feet of grade-A workspaces under its managed aggregation model. This move increases Awfis' total workspace with Nyati to five lakh square feet across Pune. The company now operates around one lakh seats across 169 centres in 17 cities. Awfis has also signed agreements for 15,668 more seats, reinforcing its growth. With a client base dominated by large corporations and MNCs, Awfis maintains a strong portfolio, reflecting its strategic focus on asset-light expansion and long-term client relationships.
Awfis Space Solutions (Awfis), a leading provider of flexible workspace solutions, has significantly deepened its collaboration with Nyati Group by securing an additional three lakh square feet of grade-A workspaces under its managed aggregation (MA) model. This strategic partnership has enhanced Awfis' footprint with Nyati Group, bringing their combined total to five lakh square feet, distributed across Nyati Empress in Viman Nagar and Nyati Enthral in Kharadi, Pune.
Awfis' MA model, a cornerstone of its operational strategy, involves profit-sharing partnerships with landlords and developers, with the partners contributing the majority of capital for office fit-outs. By June 30, 2024, the company had secured 79% of the newly added or under-construction seats through this asset-light-managed aggregation model. With this expansion, Awfis now operates approximately one lakh seats across 169 centres, spanning 17 cities and 54 micro-markets. In total, the company's operational and under-fit-out spaces extend to 185 centres, encompassing 112,038 seats and 5.6 million square feet of chargeable area.
In a move that underscores Awfis' growth path, the company has signed a letter of intent for the addition of 15,668 seats across 23 new centres, aiming to establish a pipeline of 1,27,726 seats across 208 centres. Over the past year, Awfis has experienced significant expansion, adding 30,156 seats and 48 new centres, reflecting a strong year-on-year growth of 43% in seating capacity and 40% in the number of centres. The company has also notably increased its presence in Tier II cities, expanding its footprint by 90%, from 10 centres in June 2023 to 19 centres as of the latest count.
This expansion aligns with Awfis' strategic emphasis on the managed aggregation model, which now accounts for 67% of its total seating capacity. The company remains on track to meet its FY26 target of adding 40,000 seats, as outlined by Deputy CEO Sumit Lakhani during a recent earnings call. Awfis' client portfolio is predominantly composed of large corporations and multinational companies, which constitute 65% of its clientele. Small and medium-sized enterprises (SMEs) make up 22%, while startups represent 13%, and freelancers account for the remaining portion.
The company's focus on securing multi-centre clients is evident, with 36% of its portfolio consisting of such clients. The company's exit month occupancy rate stood at 71%, with centres older than 12 months achieving an occupancy rate of 84%. Within Awfis' portfolio, the average client tenure spans 34 months, supported by a 24-month lock-in period.
This strategic expansion and consistent occupancy rates highlight Awfis' commitment to providing top-tier flexible workspaces, positioning the company as a leader in the dynamic and evolving workspace solutions industry.
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