With startup ecosystem gaining pace in India and Startups coming up in every domain, apart from internet economy, coworking spaces have seen a significant rise and adaption. The three main reasons why people prefer these coworking spaces rather than a special office are:
- Lower rate of maintenance.
- Flexible work environment.
- Place to find people with different qualifications for different requirements.
Also co-working spaces offers many facilities for a very affordable rent. Basic facilities that most of the co-working spaces in India provide are -
- Latest technology with fast internet connectivity
- Conference Room
- Coffee and Snacks
- Registered emails
- Fun events
The revenue model of the coworking space providing companies is pretty simple. They either earn through subscription fees or by charging according to the time. The rates depend on amenities being provided and location.
Coworking Industry in India
The way people work in India is undergoing a paradigm shift from a boring traditional office to a creative and conductive coworking office space. These types of workplaces help in building up a community and network around you, which helps in building up quality contacts. These contacts are quite helpful for first stage entrepreneurs.
According to JLL, In India, the first half of 2018 saw a significant rise in coworking spaces leased, to 19 lakh sq ft from 6.4 lakh sq ft in the first half of 2017. It is expected that coworking companies would lease out 6-10 million sq ft space, especially in tier-1 and tier-2 cities in the country by 2020.
Top Coworking Spaces in India
Some of the best coworking space providing companies operating in India are-
- WeWork - Headquartered in New York, WeWork is operational in Bangalore, Gurugram, Pune, Hyderabad, Delhi NCR and Mumbai in India
- Cowrks - Cowrks coworking spaces are available in Bangalore, Mumbai, Delhi NCR, Chennai and Hyderabad.
- 91Springboard - It has presence in Bangalore, Delhi, Gurugram, Goa, Hyderabad, Mumbai, Noida and Pune.
- Awfis - Leading provider of co-working spaces in Delhi, Bangalore, Hyderabad, Mumbai, Gurugram, Noida, Kolkata, Pune and Chandigarh.
- Regus - Founded in Brussels, Belgium,in 1989, Regus offers coworking spaces across 12o countries worldwide and is present in many Tier I and Tier II cities in India.
Coworking Spaces in India - Current Trends
Currently, the office spaces are experiencing double digit growth and these coworking platforms prove to be an efficient solution. The cities with the highest demand for such shared work spaces are Gurugram, Mumbai, Bangalore and Hyderabad, as these are the cities which are seeing an exponential rise in tech and internet based startups.
The 2 big indigenous coworking spaces of India, Awfis and 91Springboard have seen a tremendous rate of growth, both in revenue and office space. Awfis' revenue grew almost three times in 2018-19 to Rs 158 crore from Rs 56 crore in the previous year. Again, as per reports, in FY17, 91springboard too recorded huge growth in revenue - 1387% - making a total income of INR 19.8 Cr against INR 1.3 Cr in FY16. The main reasons of the growth of these companies being the increasing office maintenance costs, number of startups and scaling of these office spaces.
The measure of the coworking spaces industry is the number of seats. According to a report by the Confederation of Indian Industries, shared workspaces provider WeWork and property consultancy JLL India, The total number of seats in the co-working industry is about 12-16 million. Of this 10.3 million seats is occupied by large companies. Again, 1.5 million of these seats is occupied by SMEs and another 1.5 million by Freelancers. While startups occupy the smallest chunk of 100,000 seats.
Future of Coworking Spaces in India
This industry has caught eye of many investors. Many foreign giants like Wework are also expanding their footprint in our country, reason, youth taking up entrepreneurship as their career option. Pacing their growth into tier-2 and tier-3 cities will be utmost important, because cities like Ahmedabad, Pune, Vijayawada etc. are slowly turning themselves into startup hubs.
Combining coworking platforms and incubation centers is the next big thing, where people can find investments, colleagues and a healthy environment all together at one place. Currently, a coworking space either leases or opens itself in some cafe’s, so with more deeper penetration with more affordable prices, people might slowly drift towards these modern workplaces. Currently, valued at around $1 Billion, the valuation might grow to $ 7-8 Billion by 2022, for this workspace sector in India.