Smartworks Co-working Spaces Limited, a managed office platform, has leased around 2 lakh sq ft of office space on Bengaluru’s Sarjapura Main Road for a monthly rent of ₹1.94 crore for six years, documents accessed by data analytical firm Propstack showed.
The company has taken approximately 200,000 sq ft across the basement, ground floor, four upper floors and terrace level of a commercial property located on Sarjapur Main Road, Ambalipura. The property is owned by landlords BV Dayanand and Bharath Dayanand, the document showed.
The lease commenced on April 1, 2025, and has been signed for a tenure of six years. The space was leased at ₹97 per sq ft per month, with a monthly rental of about ₹1.94 crore, it showed.
As part of the agreement, Smartworks has deposited a security amount of ₹9.70 crore. The rent will be increased by 10% every two years, the document showed.
The entire flexible office space has been leased to Zepto, people aware of the developments said.
A list of questions has been sent to Smartworks. The story will be updated if a response is received.
Previous transactions
Smartworks recently expanded its multi-city managed office engagement with a Forbes 2000 company and a global leader in digital business services and customer experience (CX) management. The expansion included adding 1,150 seats at the company’s managed campus at Tata Intellion Park, expanding the client’s presence across Bengaluru, Kolkata, Hyderabad, and Mumbai. The combined expected rental revenue from these locations is estimated to exceed ₹155 crore, including ₹51 crore from the newly signed Mumbai deal, Smartworks had said.
In December last year, Smartworks also leased approximately 1.68 lakh sq ft in Kolkata to a global information technology, consulting, and business process services provider. The IT major’s new office is distributed across two Smartworks campuses – Victoria Park and Mediasiti, located in Kolkata’s commercial micro market at Salt Lake City, Sector V. The advisory partner for this transaction was JLL India, the company said in a regulatory filing on December 4.
In November last year, Smartworks had signed an agreement for over 8.15 lakh sq ft in Mumbai, making it one of the city’s largest flexible workspace campuses. Located in Eastbridge, a commercial development by the Niranjan Hiranandani Group in Vikhroli (W), the project will be Smartworks’ sixth campus, with operations expected to begin in Q4 2026 on Mumbai’s LBS Marg. The company currently operates six office campuses across India, each spanning over 5 lakh sq ft.
As of Q3 FY26, Smartworks Coworking Spaces Limited reported a committed rental revenue pipeline of over ₹4,700 crore, reinforcing the long-tenure, enterprise-led nature of the business, the company said.
Smartworks leases large commercial buildings and converts them into managed office campuses designed for enterprise use. The company manages design, delivery, technology, and daily operations, allowing occupiers to scale without owning or managing real estate.
Also Read: Smartworks leases around 1.68 lakh sq ft of office space to a leading IT services major in Kolkata
India’s flex office market grows 8.4x since 2017, outpaces overall office sector growth
According to Knight Frank India’s latest Flex Space Occupier Intelligence report, India’s flex office market has seen a sharp rise in annual transaction volumes, growing from 2.2 mn sq ft in 2017 to 18.6 mn sq ft in 2025 across the top eight cities. This represents an 8.4‑fold increase, equivalent to a 30% CAGR over the eight‑year period, significantly outpacing the broader office market, which recorded a 9% CAGR during the same timeframe.
This sustained growth has driven flex space penetration from 5% in 2017 to 21% in 2025, it noted.
Bengaluru remains India’s largest flex market by absolute scale, consistently leading national absorption since 2018, peaking at 5.3 mn sq ft in 2025. MMR (Mumbai Metropolitan Region) has evolved from an early flex market into a more scaled one, with 2025 marking its highest-ever flex absorption at 2.7 mn sq ft and a strong 28% penetration.
