International companies finding an easy route in India with co-working spaces
Once hub, an Israel based technology venture has recently set its feet in India with GoWork (world’s largest co-working facility in Gurgaon) to test waters of Indian market. Similarly, the Swedish watch company, Daniel Wellington, entered India with occupying space in WeWork BKC, to focus on expansion strategies with the help of cost-efficient solutions. Recently, Hyderabad based Anthill Ventures has opened its $100Mn Fund For Israeli Startups.
The average rent of an office space in India’s prime locations ranges between Rs 100 and Rs 250 per sq ft. along with the additional costs of setting up and maintenance. Co-working spaces like GoWork are addressing both long-term and short-term requirements of foreign businesses, as well as providing a business collaborative atmosphere, community and varied amenities like gym, spa, sleeping pods, Netflix rooms, bar, live kitchen, crèche facility, frustration zones etc. Coworking spaces also offers tenures of less than one year, whereas any regular commercial lease asks for a minimum lock-in period of five years. Players like GoWork, WeWork, Smartworks, AWFIS, etc., are empowering the new entrants to save 15-30 % of costs while optimizing their operations in a new market while also enabling them to upsize and downsize their business. These foreign businesses get to save on expenses such as electricity, water, administrative costs, and internet charges. Additionally, these space providers are providing customized services to their foreign occupiers along with financial, legal and logistic support.
Understanding that the international corporates and startups are establishing teams in India, co-working spaces have come up with innovative amenities and modern culture to attract their young talent while supporting the millennial lifestyle. With PM Modi creating a pipeline of opportunities for Indian market, it has become a preferred economy to invest in along with the adoption of regulatory reforms. As per a recent CBRE South Asia report, India is leading the growth of flexible office spaces across Asia-Pacific region while several multinational and Asia Pacific-based companies have expressed their interest in the Indian market.