Knotel lost $223M before the pandemic struck

The flexible-office startup’s financial woes worsened after coronavirus hit

TRD NATIONAL /
Jun.June 16, 2020 12:30 PM
Amol Sarva (Sasha Maslov, iStock)
Amol Sarva

Flexible-office provider Knotel lost $223 million last year — even before coronavirus flipped the office market on its head.

Company financials, obtained by Business Insider, reveal the startup lost $49 million during the first quarter, ending the period with $36 million in cash on hand. At the time, it reported total assets of $110 million, less than half its total liabilities of $238 million, including $84 million in accounts payable.

A Knotel spokesman disputed the numbers, saying the company had a “solid” first quarter. “Q2 so far still has us tracking to be profitable around year-end,” the spokesman said.

Founded in 2015, Knotel was among the fast-growing companies in the flex-office space, operating 5 million square feet in 16 cities worldwide. Most recently, it was valued at more than $1 billion after raising $400 million last year.

But even before the pandemic hit, Knotel, which once cheered WeWork’s demise, ran into financial trouble. It cut one-third of New York jobs in January, and then slashed its workforce again in March when the pandemic struck and small businesses and other tenants stopped paying rent or exited their spaces. “Business as usual is over,” CEO Amol Sarva said at the time. “We’re going to prepare for the worst case.”

First-quarter financials show Knotel had $314,401 worth of credit-card liabilities at the end of 2019. At the end of the first quarter, $99,843 was credited back to its balance sheet.

Knotel has projected $350 million in revenue this year. In the first quarter, it generated $74 million in revenue with $6.6 million in gross profit. [Business Insider] — E.B. Solomont 


Related Articles

arrow_forward_ios
2450 Colorado Avenue and IWG CEO Martijn Roordink (Credit: Google Maps and Eóin Noonan/Sportsfile via Getty Images)

Co-working firm Spaces sues landlord over $5.4M in tenant improvements

Co-working firm Spaces sues landlord over $5.4M in tenant improvements
Amol Sarva and 643 Olive Street (Credit: Google Maps)

Knotel no pay: Lawsuit says company broke profit-sharing agreement

Knotel no pay: Lawsuit says company broke profit-sharing agreement
NeueHouse is preparing to open Venice co-working space

NeueHouse is preparing to open Venice co-working space

NeueHouse is preparing to open Venice co-working space
From left: Hiten Samtani, Bridgid Coulter of Blackbird, Kat Lau from Industrious and Jim Doorne of IWG

What’s next for the co-working business?

What’s next for the co-working business?
From left: Bridgid Coulter of Blackbird, Kat Lau from Industrious and Jim Doorne of IWG

TRD panel: Co-working after the We-pocalypse

TRD panel: Co-working after the We-pocalypse
From left: Adam Neumann and Sundar Pichai (Credit: Getty Images and iStock)

Google, WeWork propel co-working and tech firms to LA leasing title

Google, WeWork propel co-working and tech firms to LA leasing title
The building with Cross Campus founder Ronen Olshansky and Suge Knight

From The Chronic to co-working: Cross Campus’ LA expansion now includes former Death Row Records HQ

From The Chronic to co-working: Cross Campus’ LA expansion now includes former Death Row Records HQ
Justin Stewart, president and co-founder of Industrious

Co-working firm Industrious grows its reach to Pasadena

Co-working firm Industrious grows its reach to Pasadena
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...