Startup India effect: Co-working space business gaining momentum among overseas MSMEs
Problems overseas MSMEs are facing is in establishing a functional workplace in their initial phases or trial phases, and the best solution are co-working spaces.
On account of a positive environment emerging for overseas startups in India, the co-working space business is gaining momentum. The industry insiders are of the opinion that the problems overseas MSMEs are facing is in establishing a functional workplace in their initial phases or trial phase, and the best solution for this are co-working spaces. They have revealed that in the last 5 years, more than 350 operators have been looking to tap into this market.
Speaking about the overseas MNCs fuelling the co-working space business in India Gautam Duggal, Co-founder & CEO at Eccosphere told Zee Business online, "Investment is crucial to every business regardless of their industry verticals. With the increasing globalization, a lot of MNCs are looking forward to India as a market with great potential. Therefore, they are eagerly finding their ways into the country. The major issue faced by these companies is establishing a functional workplace in their initial phases or trial phases, and the best solution is – Co-Working Spaces. A completely furnished office space with optimum IT infrastructure, which these co-working spaces offer is helping MNCs to a great extent to pilot their services in India. All I can say is, co-working spaces aren’t just lucrative for aspiring MNCs but an integral part of the growing Indian economy."
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Sandeep Singh, Founder at Coworly — an online co-working space reservation business told Zee Business online, "Co-working sector has seen exponential growth in the country in past 5 years and with more than 350 operators looking to tap into the market, the customers have a pool of options to choose from. We identified the need for a platform which will bring together all the players and make it easier for customers to compare and choose the best-suited option in their budget. We plan to enter more markets like Bangalore, Mumbai, Chennai and Hyderabad soon as these markets are seeing a huge demand for such flexible workspaces.”
According to real estate services firm CBRE, "The global average utilisation of assigned seats is 60 per cent, excluding vacant seats, while the global average meeting room utilisation is just 30 per cent." The CBRE further adds that the next few years, with office rents continuing to move up across India, the total space leased by co-working operators in tier-1 and tier-2 cities could touch 6-10 m sq. ft. by 2020.