Shesh Rao Paplikar on Rethinking Office Spaces, Leasing Models, and BHIVE’s Expansion Playbook

In this interaction with StartupTalky, Shesh Rao Paplikar, Founder and CEO of BHIVE Workspace, discusses the key challenges in India’s managed office space sector, including integrating real-time systems for billing, maintenance, and occupancy. He explains BHIVE’s flexible leasing model, city-wise expansion strategy, and how customer insights shaped their premium centres. Paplikar also shares how workspace needs are shifting towards wellness and learning, and how BHIVE is responding to hybrid work. He outlines the internal changes being made to improve operations and prepare the company for a public listing.

StartupTalky: The managed office space sector is quickly evolving in India. From your experience, what unique challenges and opportunities has BHIVE encountered in reshaping the commercial real estate industry?

Mr. Paplikar: As the founder of BHIVE, I have addressed the challenges of India’s managed office space sector by combining the stability of traditional real estate with the adaptability required by modern enterprises. Integrating real-time billing, maintenance, and occupancy systems presented significant difficulties, often requiring intense effort.

However, the successful alignment of these systems has been highly rewarding. BHIVE’s shorter, flexible leases on meticulously designed workspaces consistently deliver higher occupancy than conventional long-term leases, supporting our expansion. By incorporating advanced technology and engaging community events, BHIVE is redefining commercial real estate, providing a balanced solution that meets the evolving demands of India’s workforce.

StartupTalky: Bengaluru makes up 95% of BHIVE’s current portfolio. What specific factors are driving your decision to expand into new cities? How do you plan to adapt your model to different regional markets with varying business ecosystems?

Mr. Paplikar: BHIVE's expansion into new cities is fuelled by vibrant entrepreneurial hubs and escalating demand for agile workspaces in those cities.

To fit our model into different regional markets with varying business ecosystems, we adapt our products, services, community programs, and leasing structures to meet each city's unique business environment and operating needs. This helps us drive sustained growth and deliver exceptional value to diverse professional communities.

StartupTalky: Your premium centres in Indiranagar and Garudacharapalya in Bengaluru have raised the bar for coworking. Could you share the key customer insights or market gaps that influenced these location choices and your approach to creating premium workspaces?

Mr. Paplikar: Our premium coworking spaces in Indiranagar and Garudacharapalya were carefully designed based on extensive consumer research and market analysis. Our interactions with emerging SMEs revealed a consistent demand for premium interiors, round-the-clock accessibility, and conference facilities suited for late-night investor presentations.

Furthermore, the seamless metro connectivity in Indiranagar and Garudacharapalya’s proximity to the HAL airport corridor make them ideal for both local and visiting professionals. This data-driven approach helps ensure our workspaces meet the evolving needs of small businesses.

StartupTalky: Startups and SMEs often have distinct and evolving workspace needs. What are some surprising or emerging demands you have noticed recently, and how is BHIVE innovating to address them beyond the typical flexibility and tech features?

Mr. Paplikar: While startups and SMEs still pay attention to wellness-oriented and learning opportunities in workspaces, the new-age requirements are agility and technology, on-site yoga, gym, and skill-sharing sessions, such as design thinking or stress management.

BHIVE is addressing this shift by piloting its 'Elevate Your Lifestyle at Work' concept, integrating wellness with curated learning experiences. These shifts help build an energetic environment where employees can thrive and enhance well-being and productivity while meeting the fast-paced demands of ever-evolving businesses.

StartupTalky: As hybrid work becomes the new normal, how is BHIVE redesigning its spaces and services to boost productivity, community, and well-being? Could you share specific examples of changes made based on client feedback?

Mr. Paplikar: With hybrid work becoming the norm, we are redesigning our spaces to boost productivity, community spirit, and overall well-being. Based on client feedback,  we have expanded silent pods and introduced ergonomic focus booths to support concentrated work.

Additionally, collaborative hubs have been upgraded to promote networking and innovation. Also, to integrate lifestyle needs, BHIVE now offers wellness rooms, sustainable designs, and on-site cafeterias, thus creating a balanced environment that aligns with modern workforce demands, besides promoting a vibrant community.

StartupTalky: Preparing for a public listing is a major milestone. What internal transformations and governance practices have you prioritised to ensure BHIVE is IPO-ready, and how will this transition impact your company culture?

Mr. Paplikar: To get IPO-ready, we have made strong internal changes, including building a strong leadership team, improved financial transparency, improved audit & risk management committees, and improved ESG reporting frameworks. We have developed tight compliance processes and have embedded accountability in the organisation by having monthly "Town Hall" meetings that facilitate wide open communication.

These initiatives reinforce our commitment to integrity, strengthen stakeholder confidence, and ensure that we remain aligned with the expectations of public markets, thus driving sustainable growth and meaningful employee engagement.

StartupTalky: Technology is key to managed office success. Post your acquisition of Praemenio, how are you integrating tech solutions to differentiate BHIVE’s offerings and create seamless experiences for clients and investors alike?

Mr. Paplikar: Following the acqui-hire of Praemenio, our trusted consultants, we have seamlessly integrated their expertise to elevate our tech-driven offerings. We have enhanced the BHIVE App and developed platforms to streamline processes for our sales team, ensuring a frictionless experience for clients and investors. This strategic tech integration, led by our CTO and product heads, reflects our commitment to solving complex challenges and delivering innovative, user-centric solutions that set BHIVE apart in the managed office space.

StartupTalky: Looking forward, beyond geographic expansion, what strategic sectors or innovative business models is BHIVE exploring to stay ahead in the competitive coworking and real estate markets?

Mr. Paplikar: We are strategically advancing beyond geographic expansion by focusing on sector-specific accelerators to promote innovation. Embracing our motto, 'Elevate your lifestyle at work,' we integrate wellness into workspaces and offer amenities like gym sessions and showers to enhance work-life balance. By fusing real estate, community, and technology, we aim to maintain a competitive edge in the evolving coworking and real estate market.

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