Co-working spaces in India are open for (big) business

Co-working companies’ bet on enterprises—and consequently, enclosed private offices—may have given them a slight edge in weathering the current storm. But they still need to make lasting changes to their business to bounce back

The average space per desk in a post-Covid co-working space may increase to 80-90 sq ft from 60 sq ft

This means fewer seats, and with an increased emphasis on hygiene, also a jump in maintenance costs

The demand for office space in India is also set to decline 15-20% in 2020, thanks to the impact of Covid-19

More operators may opt for a revenue-share arrangement with landlords to protect themselves

For Mumbai-based social-gaming app Bakbuck, India’s nationwide lockdown landed like a suckerpunch. Since it was implemented on 25 March, the company’s advertising revenue has plummeted 75%. It could no longer afford the Rs 75,000 ($990) monthly rent it paid co-working company 91springboard. After around two years of working out of the co-working space, Bakbuck’s team—down to six from nine—decided to move out. They currently work from home, and will likely do so for the foreseeable future.

But even as Bakbuck and other small businesses like it gather their belongings and trudge out of shared working spaces, co-working companies aren’t particularly worried.

AUTHOR

Seetharaman G

Starting out as a business journalist in 2008, Seetharaman has written about energy, climate change, retail, banking, and technology. He has worked with Business Today, a fortnightly, and the Sunday edition of The Economic Times.

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