Key Takeaways
- Smartworks board approved full buyout of WorkStudio, a Singapore flex-space provider managing 26,000 sq ft
- Deal closes by July, expanding Smartworks Singapore footprint to 76,000 sq ft across four centres
- One Smartworks promoter holds an interest in WorkStudio, raising related-party transaction questions
Smartworks, India's largest listed coworking operator, will fully acquire Singapore-based WorkStudio by July. The board approved the deal this week. Financial terms remain undisclosed, but the acquisition doubles down on a market Smartworks entered just months ago.
Once complete, the company's Singapore portfolio will stretch to four centres covering roughly 76,000 sq ft. That's a meaningful footprint in a city-state where premium office rents run among Asia's highest. WorkStudio, founded in 2024, manages a single 26,000 sq ft space and posted revenue of ₹5.09 crore in FY26.
Why Singapore, and why now?
The company's Singapore subsidiary is executing the acquisition. Smartworks framed the move as strengthening its presence in "a key international business hub," which is corporate-speak for a straightforward bet: multinationals and global capability centres need flexible space, and Singapore is where they sign leases.
This deal follows an announcement days earlier that Smartworks would open a 15,000 sq ft managed office in Manulife Tower, right in Singapore's Central Business District. That centre targets GCCs and Fortune 500 tenants. Together, the organic opening and this acquisition show Smartworks racing to build scale before competitors lock up the city's enterprise clients.
The related-party wrinkle
Buried in the disclosures: one of Smartworks' promoters holds an interest in WorkStudio. The company confirmed this but offered no detail on the stake size or how it affects valuation. Investors in listed companies tend to scrutinize related-party transactions, particularly when terms aren't public. Smartworks' statement that the deal is "in-principle" and "subject to further negotiation" suggests the final documents may address this.
WorkStudio will become a step-down subsidiary, meaning it sits beneath Smartworks' Singapore entity in the corporate structure. For accounting purposes, it consolidates upward.
Smartworks' financials look healthy
The acquisition arrives as Smartworks swings to profit. Q4 FY26 net profit hit ₹16.6 crore, compared to a loss of ₹8.3 crore in the year-ago quarter. Operating revenue jumped 45% year-on-year to ₹519.7 crore.
Those numbers give the board confidence to spend on international growth. The company raised roughly ₹2,700 crore in its December 2024 IPO, one of the largest coworking listings in India. Shares closed 1.76% higher at ₹489.20 on the day of the announcement.
Where Smartworks stands today
Across India and Singapore, Smartworks operates 66 centres spanning 16.1 million sq ft in 15 cities. Its client list reads like a who's who of enterprise tech and consumer brands: Google, Philips, Groww, L&T, Mahindra Logistics, MakeMyTrip. The company's pitch is mid-to-large enterprise clients, not freelancers or seed-stage startups.
That focus explains the Singapore push. Global firms running regional HQs or shared services hubs want turnkey offices without long-term lease commitments. Smartworks is betting it can serve them better than WeWork's successor entities or local operators.
Board changes signal governance tightening
In a separate move, Smartworks recommended appointing Dilip Deshmukh, former chairman of the Company Law Board, as a non-executive independent director. The board also added ex-IRS officer Rajeev Krishnamuralilal Agarwal as an additional director. Both appointments suggest the company is bolstering its governance structure as it scales internationally and manages investor scrutiny post-IPO.
Logicity's Take
Smartworks is playing a classic post-IPO playbook: use the war chest to acquire competitors and build scale fast. Singapore is a smart beachhead because the market is small enough to dominate but prestigious enough to open doors across Southeast Asia. The related-party angle deserves more transparency, but the underlying strategy is sound. If Smartworks can replicate its India enterprise model in Singapore, it becomes harder for regional rivals to match.
Frequently Asked Questions
How much is Smartworks paying for WorkStudio?
Smartworks has not disclosed the financial terms of the acquisition. The deal remains subject to final negotiations.
When will the WorkStudio acquisition close?
The company expects to complete the transaction by July 2025.
How big will Smartworks' Singapore presence be after the deal?
Smartworks will operate four centres totaling approximately 76,000 sq ft in Singapore.
Is there a conflict of interest in this acquisition?
One of Smartworks' promoters holds an interest in WorkStudio, making this a related-party transaction. Details on the stake size and impact on deal terms have not been disclosed.
How is Smartworks performing financially?
Q4 FY26 net profit was ₹16.6 crore, compared to a loss of ₹8.3 crore in Q4 FY25. Operating revenue rose 45% year-on-year to ₹519.7 crore.
Another major Indian company managing post-IPO investor dynamics
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Source: Inc42 Media / Anne Florentyna
Huma Shazia
Senior AI & Tech Writer
Produced with AI assistance and reviewed by the Logicity editorial team. Learn more in our Editorial Policy.
