Building Awfis from Inception to IPO: SPJ Alumni Spotlight with Sumit Lakhani
What does it take to turn a startup into the largest flexible workspace solutions company in India? Sumit Lakhani, Deputy CEO of Awfis Space Solutions Limited and an SP Jain Global graduate, knows the answer well. Joining Awfis at its inception, Sumit has played a pivotal role in its growth, helping to expand the company from a single center to over 169 centers across 16 cities, serving more than 2,300 clients. With over a decade of experience in investment banking, private equity, and IT services, Sumit’s journey is a story of bold decisions, relentless dedication, and a passion for innovation.
In this interview, Sumit shares insights from his remarkable journey, overseeing everything from sales and marketing to real estate acquisition and strategy. Recognised as one of Realty+’s “40 under 40” and ‘CXO of the Year,’ his leadership was key in Awfis becoming the first coworking company in India to go public. Sumit’s story offers valuable lessons for aspiring leaders in today’s dynamic business world.
Q. Could you tell us a bit about yourself and your journey to date as the Deputy CEO of Awfis Space Solutions Limited?
I hold a bachelor’s degree in technology (Computer Science and Engineering), and after completing my Post Graduate Diploma in Management (Finance) from SP Jain Global, I worked with Tesco and ST Asset Management in Singapore. I then moved back to India and joined Yes Bank, where I served as Vice President, focusing on Sustainable Investment Banking, Business Advisory, and Socially Responsible Investing (SRI). Currently, as Deputy CEO at Awfis, I am responsible for organisational P&L management and revenue growth, with a key focus on Sales, Marketing, Investor Relations, and Strategy & New Initiatives.
Along the way, I got married and now have a 9-year-old son. I truly believe in the importance of hobbies for boosting mental health and relieving stress, as they significantly contribute to holistic personality development. I actively participate in tennis, cricket, and pickleball, and I absolutely love to travel.
Q. Your journey with Awfis began at its inception. Could you share some pivotal moments from this journey that have shaped you as a leader?
I joined Awfis at its inception, where I had the opportunity to work with a talented team on both the demand and supply sides. On the supply side, I was fortunate to be part of the team that developed Awfis’s managed aggregation business model, which aimed to create mutually beneficial partnerships with space-owners through a risk-averse and asset-light approach. This innovative strategy was a collaborative effort and allowed us to make significant strides in the coworking industry. Working alongside the Real Estate team, I contributed to the company’s expansion efforts, which helped Awfis establish a stronger presence across the country.
These experiences have been instrumental in shaping me as a leader. By being involved in the creation of a pioneering business model, I learned the value of collaboration and the power of leveraging my colleagues’ expertise. I also discovered the importance of adaptability and openness to new ideas, which are essential traits for any leader. Working with different teams has made me a more empathetic and understanding leader. My journey at Awfis has sharpened my decision-making and problem-solving skills and motivated me to navigate challenges and drive innovation. The key pillars of my leadership style are inclusivity, strategic foresight, and a commitment to fostering an environment where collaboration and creativity can thrive.
Q. As someone involved in all aspects of Awfis’s business, how do you ensure the company’s diverse services continue innovating and meeting client needs?
I’ve had the privilege of being part of Awfis’s journey from a coworking player to a fully integrated, tech-enabled workspace solutions platform. Working with an exceptional team, we’ve introduced a variety of new offerings to the office market, such as Mobility Solutions for professionals on the go and Awfis Gold, our premium range of workspaces that provide Grade A offices for large enterprises. We’ve also expanded our services to include Awfis Care, a facility management solution, and Design & Build, which enriches our range of offerings. As a member of Awfis’s core management team, I’ve been involved in areas like fundraising, strategy, marketing, sales, and real estate acquisition. These responsibilities have allowed me to work closely with talented colleagues, and together, we’ve developed initiatives focused on positioning Awfis as a competitive brand in the Indian market. It’s been a team effort to enhance our communication strategies and create meaningful client experiences.
I’m especially proud of how we’ve navigated the digital transformation of Awfis. This transformation has been a collaborative effort, and our goal was to extend technological benefits to our clients effectively. I was part of the team that developed our account-based CRM system, which helps us manage audience data, send automated reminders, and collect feedback to better understand client needs and enhance the customer lifecycle. We’ve also explored diverse marketing strategies that cater to both B2B and B2C audiences, which have contributed to Awfis’s brand positioning. Our team’s commitment to these strategies has helped increase the company’s value and profitability, even in a competitive market. I believe that by working together and embracing new opportunities, we can continue to drive Awfis forward and achieve our collective goals.
Q. How did your time at SP Jain Global prepare you for the multifaceted role you hold today at Awfis?
My time at SP Jain Global was instrumental in preparing me for the multifaceted role I hold today at Awfis. The rigorous curriculum and diverse learning experiences at SP Jain Global provided a solid foundation in management principles and strategic thinking, which have been invaluable in my career.
Firstly, the program’s emphasis on practical, real-world applications helped me develop a strategic mindset and problem-solving skills. This has been crucial in my role at Awfis, where I need to navigate complex business challenges and make informed decisions across various functions.
Secondly, the exposure to a wide range of business disciplines—from finance and marketing to operations and strategy—enabled me to gain a holistic understanding of how different aspects of a business interact. This comprehensive perspective has allowed me to effectively manage and integrate multiple functions, including sales, marketing, real estate acquisition, and investor relations.
Additionally, the collaborative projects and team-based assignments at SP Jain Global honed my ability to work effectively with diverse teams, a skill that has been essential in leading cross-functional teams and driving company-wide initiatives at Awfis.
Overall, the combination of theoretical knowledge and practical experience gained at SP Jain Global has equipped me with the skills and confidence to excel in a dynamic and multifaceted role, allowing me to contribute effectively to Awfis’s growth and success.
Q. What does the experience of ringing the bell at the NSE signify for you personally and professionally?
The ringing of the bell symbolises the realisation of our vision; it represents the culmination of our collective efforts and signals the start of a new chapter. If I had to choose a defining moment from the impeccably executed ceremony, it would be the traditional countdown, with the numbers echoing the years I’ve dedicated to Awfis.
I’m thankful for the learning experiences and the incredible people I’ve encountered. I am especially grateful to our teammates, partners, and community for their unwavering support, which has been crucial in reaching this milestone. This is just the beginning of our journey, and there’s a lot more to come for me and the company.
Q. What challenges did[AG1] you face while scaling Awfis from one centre to 175+ centres across 17 cities, and how did you overcome them?
Building awareness, adoption, and retention for our workspace solutions has been a crucial part of my journey with Awfis, especially as competition in the industry intensified. Initially, we focused on educating the market about the benefits of coworking spaces, encouraging adoption among various customer segments, and retaining them as loyal clients. When the COVID-19 pandemic hit, it brought about uncertainty and challenges, but it also presented us with an opportunity to pivot our strategy. We transformed Awfis into a one-stop solution for all workspace requirements, catering to a diverse spectrum of needs. This strategic pivot enabled us to meet the demands of businesses and individuals seeking flexible and safe work environments.
Q. You’ve been recognised with several prestigious awards. How do these accolades influence your professional approach and the goals you set for yourself?
One of the most significant awards I have received in my career is the Great People Manager award. As someone who manages a very diverse set of people across different geographies and departments, this recognition holds great meaning for me. I am forever grateful to my teams for their incredible work ethic, which makes working with them an absolute pleasure. Their dedication and commitment are the driving forces behind our success, and I attribute my achievements to their unwavering support and excellence. For me, setting goals is about envisioning what seems beyond the impossible and then finding a way to achieve it. This mindset fuels my passion for growth and innovation, continually pushing me to explore new possibilities and lead Awfis towards unprecedented success.
Q. The coworking space market has evolved significantly in recent years. What trends do you foresee shaping its future?
The flexible workspace market in Tier 1 and Tier 2 cities in India is projected to reach approximately 105 million sq. ft. by 2026, accounting for new supply in Tier 2 cities as well. Moreover, Tier 2 cities are poised to become the next major growth area for flexible workspaces, with demand for commercial real estate in these regions expected to rise significantly over the next 3 to 4 years. While the technology industry’s growth in India initially relied on third-party service providers, the past decade has seen a notable rise in Global Capability Centres (GCCs). The GCC market size has grown from USD 19.5 billion in Fiscal 2015 to USD 46.0 billion in FY 2023, with a CAGR of 11% (Source: NASSCOM).
This increase in demand for global capability centres, business process offshoring centres, and offshoring industries, coupled with the expansion of workspaces in Tier 2 cities, will further drive growth in the flexible workspace market. We offer a range of allied services, including food and beverage options, IT support, infrastructure services such as storage and customisation, as well as event hosting and meeting arrangements. Our clients typically require these services both on an ad hoc and long-term basis.
In recent years, the trend towards integrated and comprehensive workspace solutions has significantly evolved. Allied services such as Advanced Technology Integration, Comprehensive Health and Wellness Programs, and Enhanced Community Building are becoming crucial differentiators in the coworking space market, helping providers stand out in a competitive landscape.
Q. Reflecting on your time at SP Jain Global, what are some of your most cherished memories, and how did they contribute to your personal and professional development?
Several memorable experiences have been pivotal in my personal and professional development. One such experience was participating in a project where our team collaborated with an organisation to tackle real-world business challenges. This opportunity greatly enhanced my critical thinking, problem-solving, and decision-making skills. I also valued the chance to work closely with a diverse team toward a shared objective.
Engaging in international exchanges and connecting with peers from various cultural and professional backgrounds was also profoundly enriching. It broadened my global perspective, which has been particularly valuable in my role at Awfis. This exposure helped me develop a keen understanding of how to interact with diverse stakeholders and grasp market dynamics.
Additionally, guest lectures and interactions with experienced leaders from various sectors significantly enriched my academic knowledge and personal growth. These interactions not only deepened my industry insights but also motivated me to stay informed about ongoing industry trends.
Overall, the blend of hands-on experiences, global exposure, and industry insights at SP Jain Global has been crucial in shaping my business approach and leadership style. These experiences have played a fundamental role in my personal growth and provided me with the skills necessary to thrive in my professional career.
Q. What advice would you share with students who wish to follow in your footsteps?
My advice is, “Do not let your designation or degree limit your possibilities.” When I joined Awfis in 2015, I brought over a decade of experience from investment banking, private equity, and IT services, yet I embraced a new role that was outside my previous industry. Despite my background in investment banking, I stepped into a completely different role at Awfis, contributing to all facets of the business, including sales, marketing, real estate acquisition, fundraising, strategy, investor relations, and financial planning and analysis.
This experience taught me that adaptability and a willingness to embrace new challenges are crucial. Don’t be afraid to step outside your comfort zone and leverage your diverse skills and experiences in new and unexpected ways. Your background is a valuable asset, but it shouldn’t confine you—be open to new opportunities and let your skills and passion guide your journey.
