Invest in India’s thriving startup culture
Co-working spaces are offices where professionals from multiple companies operate simultaneously India’s thriving startup culture – the country is expected to have 11,500 tech startups by the end of 2020 – has raised the need for low-cost and flexible workspaces, leading to the flourishing of this segment.
So what is attracting investors to this segment?
The concept is redefining how people and organisations engage with their workplaces. To that extent, I see the emergence of the co-working model to be as radical an innovation for businesses as telecommuting was two decades ago.
The sharing economy involves various entities sharing assets. While sharing the workspace, the regular interactions between these different companies and professionals lead to the formation of a distinct but informal community.
Working out of a shared space is typically cheaper than renting an entire office. A startup with less than 50 employees, for instance, can save up to 30% in rental costs. Besides, there is no long-term lease which is another reason why it is hassle-free.
The main reason is that there is no deposit like in the case of a traditional office rental and it saves costs. Plus, there’s an opportunity to network with other startups and investors.
Apart from the actual office space, co-working firms also offer a range of services like an internet connection, tech support, food, and coffee services. Right now, more than a table space, what’s important for start-ups and professionals is coffee, internet speed, and what kind of people you meet. The model is profitable and, as is the case with any business, investors look at what value the company creates.