The landscape of workspaces has undergone significant changes, particularly in the wake of the COVID-19 pandemic. As businesses grapple with new working models, the conversation around coworking spaces has become more relevant than ever. At the Startup Conclave 2024 by Moneycontrol, Rishi Das, founder of IndiQube, shared his observations on how the industry adapts to these changes.
When asked about the evolution of work-from-office (WFO) practices post-pandemic, Das described a tension between employers and employees. This "tug of war," as he put it, sees employers pushing for a return to the office while many employees prefer the flexibility of working from home (WFH). The resulting hybrid model, which has become the norm in many companies, is filled with challenges. HR teams are now tasked with the intricate job of deciding who should come to the office, when they should come, and how often.
While a general trend toward a three-day office week is emerging, the approach is far from uniform. For instance, finance teams may be required to be in the office five days a week, while tech teams, often perceived as more autonomous, might opt to stay remote indefinitely. This divergence in office attendance has led to a fragmented workplace culture.
In response to a second question about demand patterns, particularly from large tech companies to well-known Indian startup brands like Myntra, Rishi Das highlighted a significant disruption in office requirements post-COVID. The trend has shifted towards establishing offices closer to where employees live, especially within large cities. The days of expecting employees to endure long commutes are waning. This shift has even spread beyond Tier 1 cities to Tier 2 locations, which Das noted are increasingly promising for business growth.
Before the pandemic, managed offices were primarily a startup phenomenon. However, the landscape has changed dramatically, with a broader range of companies, including traditional Indian firms like Air India and Ultratech Cement, now opting for coworking spaces.
The discussion also touched upon the growth potential within the industry, particularly about Global Capability Centers (GCCs) and traditional IT sectors. Das pointed out that the coworking space sector is witnessing a cyclic growth pattern, with Indian companies currently on a high, and older enterprises ramping up their presence. This diversified demand, with approximately equal contributions from IT, startups, GCCs, and Indian tech companies, is driving the expansion of coworking spaces.
In response to whether city traffic plays a role in the demand for office spaces, Das suggested that while traffic is a factor, companies are increasingly focused on optimising commuting times and reducing carbon footprints. Despite its well-known traffic woes, Bangalore continues to dominate as a hub for office space, absorbing a remarkable 56 million square feet of office space between 2018 and now, outpacing even global giants like Shanghai. Das attributed this to the IT sector's explosive growth in India, which has solidified Bangalore's status as the "real estate capital of the world."
Mr Das emphasised that Bangalore has become an irreplaceable business centre, with sectors as diverse as aviation, startups, and garment manufacturing all establishing their head offices in the city.
Finally, when questioned about IndiQube's future, particularly its IPO ambitions, Das expressed confidence that the sector as a whole is on the cusp of significant growth. Unlike other industries, the coworking sector has not been dominated by a 'winner takes all' mentality, and Das predicted that in the next three years, at least five major players in the coworking space sector will go public.
In conclusion, Das provided insights into how the next generation, particularly Gen Z, views the workspace. They seek environments where they can collaborate, engage, and have fun while being mindful of technology and environmental concerns. This generational shift is yet another factor shaping the future of coworking spaces, making them more dynamic and responsive to the evolving needs of the workforce.
Watch the second edition of the Moneycontrol Startup Conclave right here.
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