Exclusive: Sequoia-backed Awfis to offer exit to early backers

Co-working solutions provider Awfis Space Solutions is all set to provide a cash exit to its existing investors to the tune of $30 million. This appears to be the first major secondary transaction at the Delhi-based firm.

The board at Awfis has passed a special resolution to reduce its 1,50,91,892 equity and 22,36,565 preference shares to give cash exit to their existing investors DOIT Urban and RAB India Enterprises, regulatory filings with the Registrar of Companies (RoC) show.

The company will give a price of Rs 144.27 per share for all the shares held by DOIT Urban and RAB India Enterprises. As per filings, the cash consideration is worth around Rs 250 crore. The transaction is subject to the approval of NCLT (National Company Law Tribunal).

The company is also in talks to raise a new round with existing and new investors. New investors are likely to acquire the stake of DOIT Urban and RAB India, according to the filings.

RAB Enterprises is co-owned by Alkesh Tandon, husband of Rakhee Rana Kapoor, daughter of Rana Kapoor, who is the co-founder and former managing director and chief executive of Yes Bank. DOIT Urban Ventures is run under the name of Bindu Rana Kapoor and part of Do IT Talent chain founded by Radha Rana Kapoor, the eldest daughter of Rana Kapoor.

Awfis has raised around $90 million in funding from Sequoia India, Link Investments, Innoven Capital, Chrys Capital, and Yes Bank family. The Delhi-based company raised its latest funding in March 2021.

Awfis claims that it has coworking spaces with 131 centres and 77,500 seats across 14 cities.

While the company is yet to file its financial statements for FY22, Awfis’ operating revenue was reduced by 21% to Rs 178 crore and posted a loss of Rs 38 crore during the fiscal year ending March 2021. The dip in its FY21 income was largely driven by Covid-19 led pandemic.

The company is reportedly planning to raise Rs 500-600 crore through a public listing by next year. It will raise both primary and secondary capital with the former going towards expansion and growth.