Smartworks Coworking Spaces is acquiring Singapore-based Workstudio Spaces to add four centers and 1,500 seats to its portfolio. The deal, closing in July 2026, follows the company’s recent return to annual profitability. This expansion marks a push into high-demand international markets while the company maintains a strong cash position following its July 2025 IPO.
What Happened
Smartworks Coworking Spaces Limited has announced plans to acquire Singapore-based flexible workspace provider Workstudio Spaces Pte. Ltd. The transaction, which is being handled through a wholly-owned subsidiary, Smartworks Space Pte. Ltd., is expected to be completed in July 2026. This acquisition is part of the company's broader strategy to increase its presence in international markets. Once finalized, the company’s Singapore operations will grow to four centers, offering over 1,500 seats and a total footprint of 76,000 square feet.
The Strategic Pivot To Singapore
For Smartworks, this acquisition is not just about adding physical space but also about securing access to high-demand areas in Singapore. The company has already been expanding in the city-state, including a recent addition of 15,000 square feet at Manulife Tower in the Central Business District. Founder and Managing Director Neetish Sarda indicated that the company’s existing centers in Singapore have been profitable over the last two years. By adding Workstudio to the portfolio, the company aims to diversify its client base and cater to more enterprise customers who require flexible office solutions in key international business hubs.
A Significant Financial Turnaround
Investors may note the financial progress Smartworks has demonstrated in the recent fiscal year. In FY26, the company reported revenue of ₹1,796 crore, marking a 31% increase compared to the previous year. More importantly, the company achieved its first full year of profit after tax (net profit) at ₹11 crore. This is a marked improvement from the ₹63 crore loss reported in the prior fiscal year, suggesting that the business model is gaining scale and efficiency.
Balance Sheet And Expansion Strength
Since its IPO in July 2025, Smartworks has focused on reducing its debt levels. The company confirmed that it reduced its gross debt by more than 50% following the public listing. As of March 31, 2026, the company holds a net-debt negative position, meaning its cash reserves are higher than its total debt. This financial stability allows the company to fund its expansion plans, such as this acquisition, using its own cash rather than relying heavily on new borrowings.
What Investors Should Track
While the expansion highlights growth, the key focus for investors moving forward will be execution. Successfully integrating a new workspace provider into existing operations requires managing service quality and maintaining high occupancy rates across all four centers in Singapore. Additionally, as the company operates in a competitive real estate market, investors may monitor whether the company can maintain its profit margins while absorbing the costs of this new acquisition. The ability to retain enterprise clients and manage the higher operating costs typical of the Singapore market will be the next important test for the company's management.