Business Today recently spoke to Priyanka Krishnan and Aayush Maheshwari, founders of IShareSpace, a co-working space start-up. The company, which runs four centres - in Mumbai, Bangalore, Gurgaon, and Chennai - will add a fifth one in Mumbai again by January 2018. That will take its capacity to 580 seats. Here are some interesting findings from the conversation:
1. The start-up, which rolled out its first centre in April 2016, generated revenues of Rs 2.6 crore in 2016/17. It expects to grow 30 per cent this year on the back of increased capacity. The company averages around Rs 15,000 a seat per month.
2. The business model is a lease and sub-lease one. Going ahead, the firm is adding a management contract model where the builder provides the space and the start-up markets it. IShareSpace will charge a fee for managing the premises.
3. Co-working spaces are always associated with start-ups. However, the trend is moving towards more established players and MNCs who are looking at alternatives to vanilla leases because of the lack of hassle and the flexibility of lease term. IShareSpace's price points are a natural barrier to start-ups. The strategy to attract more mature companies does away with the volatility associated with start-ups. The average duration a company utilises its space can be a year.
4. IShareSpace doesn't like to describe themselves as a co-working space. They prefer to be known as "a new age business centre" or a hybrid between a co-working space and a business centre. Unlike in a co-working space meant for mostly start-ups, IShareSpace is formal in its approach. It also has tie-ups with various companies for services such as web design, app design, accounting and law. Also, restaurants and cafes.