How Awfis, other co-working startups are changing commercial realty sector/ Working Together, Affordably

27 August 2018

How Awfis, other co-working startups are changing commercial realty sector/ Working Together, Affordably

  • Business Standard

With shared offices in vogue, Awfis plans to add more than 100 centres in 12 months areas

Like many of his classmates in IIT-Kharagpur, Sanil Gupta had a dream of starting something of his own. After working in various companies for around four years, when he set out to realise his dream in 2016, he faced a problem that he had not planned for.

“People give examples of Apple and Amazon and say the starting place doesn’t matter, but for me working from home was not an option,” said Gupta, who now works with a three-member team from the Pro-working Centre of Awfis at Golf Course in Gurugram. For Gupta and many other entrepreneurs, the growth of companies providing co-working space like Awfis has helped them realise their dreams as renting a commercial space at a key location in top cities in India usually did not fit in their budget. Also, the co-working space format has brought a healthy work culture while opening doors for collaboration.

Founded by Amit Ramani in 2015, Awfis, recently raised $20 million in Series C funding from investors Sequoia India, InnoVen Capital and The Three Sisters: Institutional Office. The company says the investment will be used to expand its centres, launch new products and enhance existing technology platforms. In the past three years, the company claims to have leased 55 centres with over 25,000 seats in nine cities.

According to Ashish Sharma, CEO of InnoVen Capital, Awfis has built a competitive advantage over others through a differential supply side acquisition model.

Opportunity

Given several advantages of a shared workplace over a traditional office, the sector will likely witness robust growth in the coming years.

The shared-office industry, which started with start-ups as its primary focus, is witnessing a positive change with many large companies and SMEs eyeing co-working spaces to set up their work centres.

A recent study by real estate consulting firm Jones Lang LaSalle estimates that 13 million people in India will be working out from shared offices by 2020, and the industry will attract investments of up to $400 million by the end of this year.

Property consultant CBRE also sees a bright future for the sector in India. In a report released in 2017, the firm had stated that the co-working office space segment in India is expected spread over 10 million sq ft by 2020, with 2017 alone witnessing an absorption of nearly 1.5 million sq ft.

Revenue model
Awfis says it is making some profit for the past six months. It expects to achieve company-level profitability in September.

Apart from rentals that form the major chunk of revenue, the start-up generates a significant amount through a range of mobility products.

Generating revenues in the co-working industry, according to Awfis, is easier when compared to other industries. “Unlike other businesses with the higher cost of acquisition where the revenue starts flowing in from the 2nd or 3rd year, an Awfis product is such that we start making money within 3 weeks of customer occupying the space,” said Ramani.

The company refused to divulge the revenue figures but said its revenue grew four times between April 2017 and April 2018.

Road ahead

Seeing a huge potential in the sector, Awfis has set ambitious targets for the next year.

The company aims to add more than 100 centres with over 40,000 seats in the next 12 months while foraying into cities like Chennai, Kochi, Indore and Ahmedabad.

However, with the rising competition and fall in the number of new start-ups, any co-working start-up will find it tough to fill all its seats.

At present, more than 200 co-working start-ups are operational in India. The space is currently dominated by the likes of WeWork, CoWrks, Awfis, 91springboard and Innov8.

While Awfis claims to be the largest with total space of 1.5 million sq. ft., WeWork and CoWrks are among the fastest growing with properties of around 700,000 sq. ft.

“The current demand is a third of the total space they have taken up. They will struggle to fill the remaining space. Occupation will gather pace in the next three to five years,” Amit Goenka, chief executive and managing director at Nisus Financial Services, had told Business Standard about WeWork and CoWorks.

Expert take

Office landscape is transforming

Ramesh Nair Ramesh Nair, CEO & Country Head, JLL India : The shared workspace segment has grown exponentially in the past three years. Co-working spaces have already taken up close to 2 million sq. ft. of office space, surpassing the cumulative total absorption from 2017 in the first half of this year. The trend will continue for the rest of the year.

Co-working space providers are conscious of the requirements of the new-work generation — futuristic spaces and homogeneous environment that facilitates networking and enhances work productivity.

Awfis has been among the front-runners in bringing this new phase of change. We are confident that co-working spaces will transform the workspace landscape in India.

Fact Box
Founded: 2015
Funding: June 2018 (Series C): Received $20 million from investors Sequoia Capital, TTS:IO and InnoVen Capital
April 2017 (Series B): The start-up raised $20 million in funding led by Sequoia Capital

Visit the below link to read the complete article: https://www.business-standard.com/article/companies/how-awfis-other-co-working-startups-are-changing-commercial-realty-sector-118082600571_1.html

Print Edition : Business Standard; Dated 27th August 2018

Awfis reports 46 pc spike in FY20 revenue; launches solution to boost work-from-home productivity

22 February 2021

Awfis reports 46 pc spike in FY20 revenue; launches solution to boost work-from-home productivity

  • Posted by Arathy Nair

 

Coworking firm Awfis on Monday said its revenue grew by 46 percent to Rs 230 crore last fiscal on better demand for shared office space, and announced a solution that will provide physical and IT infrastructure to professionals working for home in the wake of the COVID-19 pandemic.

“Our revenue stood at Rs 230 crore last fiscal as against Rs 158 crore in 2018-19. It could have been more, but revenues were hit in March because of the coronavirus outbreak,” Awfis founder and CEO Amit Ramani told PTI.

The company has opened around 40 centres from May 4 with 33 percent occupancy permitted by the government. “Our centres in Mumbai and Pune are closed,” Ramani said.

He said the coworking segment has also been affected like any other industry, but expressed confidence that flexible workspace would gain momentum post COVID-19 with corporates and startups looking to cut capex.

People are currently working from home because of the lockdown. “Post COVID-19, we expect that around 10-12 percent of workforce will be working from home. Many companies have already announced such plans,” he said.

Therefore, Ramani said the company has come out with an offering called ‘Awfis@Home’, where it will help provide physical and IT infrastructure for work from home at Rs 2,500 monthly subscription fee.

“Organisations and individuals are trying their best to adjust to this new normal and the need of the hour is a solution that would help them maintain and build the productivity and efficiency of the physical workplace right in the safety and comfort of their homes,” Ramani said.

Awfis Chief Marketing Officer Sumit Lakhani said the new solution enables the flexibility of remote working coupled with the productivity of the office space.

The integrated toolkit provides the users smart and ergonomic furniture along with tech solutions like high speed broadband connection, data security, and IT solutions.

Through an app, it will also help its corporate clients in attendance management of employees.

Awfis, which currently has 35,000 desks in 70 centres across major cities, has so far raised $81 million from investors, including ChrysCapital and Sequoia India.

This story appeared in the 18 May , 2020 issue of Business Standard  was originally published at : Awfis reports 46 pc spike in FY20 revenue; launches solution to boost work-from-home productivity | Business Standard News (business-standard.com)

Create healthy work environment with creative workspace

18 February 2019

Create healthy work environment with creative workspace

  • Posted by Awfis Editorial

A healthy work environment through a blend of active urban setting as well as a stress-free ecosystem with sustainable measures can go a long way in improving employees’ productivity, say experts of workspace design.
Praveen Rawal, Managing Director of Steelcase, Southeast Asia and India, Shaishav Dharia, Regional CEO, Lodha Group and Amit Ramani, Founder and CEO of Awfis, share a list of tips:

* Creativity enhanced by technology: We’ve reached an era of peak screen time. Right now, screen time limits our impact with the physical environment, but that’s changing. Help is coming from our workplace and technology. Our spaces will become less about passively consuming what’s on our screens and more about how we interact with technology and tools.Incorporate technology to design and create an environment which will enable colleagues to work freely in-turn enhancing productivity.

* Design by data: Data has entered the work environment, adding significant value to the conversation between designers and customers. Does everyone need their own workstation or private office? Or would more private enclaves and collaboration spaces better serve the team? Sensors in the workplace can help organisations learn how often people are at their desks and what kinds of spaces will best support their people.

* The digital effect: Combining aesthetics with algorithms, multiple traditional offices and co-working spaces are infusing technology and digital tools to facilitate a conducive environment, ease in day-to-day functioning for businesses and employees as well. From smart access, smart spaces to smart meeting rooms, making use of a dedicated one app solution for a range of tasks such as QR-based visitor management, booking a conference room etc. to enabling parking allotments based on an organised number plate system through smart cameras, further aid in streamlining experiences in office spaces.

* Celebrate communities: Designers are explorers searching for inspiration in buildings being renovated into more creative workplaces. By connecting new work culture in a meaningful way to the collective identity of the location, community and brand, designers are creating authenticity in the workplace in the world. Additionally, to foster innovation and community building, office spaces are enabling collaboration through multi-use grand lobbies with activity-based settings to encourage networking, informal meeting zones etc. Such amenities also culminate in creating authenticity in the workplace and boost productivity as well.

* Biophilia 2.0: The innate desire to connect and bond with nature is experiencing a resurgence because of the balance we need from our digital world and the benefit nature’s restorative qualities provide our wellbeing. Synergising elements like embedded greens, infusing revitalising exterior elements, complying with sustainable standards and ensuring use of material and colours that offer calm and comfort, are majorly attracting the millennial workforce.

Please visit the below link to read the published article:

https://www.business-standard.com/article/news-ians/create-healthy-work-environment-with-creative-workspace-119021700335_1.html

This article was also published in the below online publications:

The New Indian Express – http://www.newindianexpress.com/lifestyle/health/2019/feb/18/here-is-how-you-can-create-healthy-work-environment-with-a-creative-workspace-1940039.html

The Morung Express – http://morungexpress.com/create-healthy-work-environment-with-creative-workspace/

Socialnews.xyz – https://www.socialnews.xyz/2019/02/17/create-healthy-work-environment-with-creative-workspace/

Newsd – https://newsd.in/create-healthy-work-environment-with-creative-workspace/

Devdiscourse – https://www.devdiscourse.com/article/entertainment/385301-healthy-work-environment-enhances-employee-productivity-experts

Outlook India – https://www.outlookindia.com/newsscroll/create-healthy-work-environment-with-creative-workspace/1480450

Awfis to triple number of co-working seats to 12,000 in Pune

06 November 2018

Awfis to triple number of co-working seats to 12,000 in Pune

  • Posted by Awfis Editorial

Co-working operator Awfis plans to expand aggressively in Pune by tripling its number of centres to 21 over the next one year driven by huge demand for shared office space in the city from startups and corporates, a top company official said.
Awfis, which was founded in April 2015, entered Pune market 18 months back and has established seven centres with a seating capacity of over 4000. Now, it has chalked out a plan to add 8,000 seats more by opening 14 new centres over next one year.

Overall, the company has 55 centres, comprising 25,000 seats, across nine cities. A seat costs anywhere between Rs 5,000 and Rs 15,000 in its centres.

It posted a revenue of Rs 57 crore last fiscal and the same is expected to reach Rs 170 crore this financial year.
“Pune has proved to be an ideal eco-system of startup entrepreneurs, SMEs and corporates, where Awfis is determined to continue its growth trajectory and provide best in class shared workspaces to facilitate businesses. We aim to open 14 new centres over the next one year, taking the total capacity to 21 centres and 12,000 seats in this city,” Awfis founder & CEO Amit Ramani told PTI.
“We have recently tied up for one centre in Pune with over 600 seating capacity,” he said, adding that the company would soon lease space for other centres.

Awfis has opened its workspaces across all key business centres in the city and is catering to clients such as Vodafone, Hinduja Group and Michelin Tyres.

The company aims to create a strong ecosystem for corporates, SMEs and startups to nurture the spirit of innovation and enterprise in the region.

Sumit Lakhani, Chief Marketing Officer, Awfis, said “Pune is undoubtedly one of the fastest growing cities in India and is seeing a lot of demand for superior workspaces by MNCs, SMEs and startups.”

Awfis currently has centres in Bengaluru, Mumbai, Delhi, Gurgaon, Noida, Hyderabad, Kolkata, Pune and Chandigarh. In wants to expand operations in Tier II markets to achieve its target to establish over 200 centres with 1,00,000 plus seats by 2020.
The company had in July raised USD 20 million (about Rs 137.57 crore) from a few investors, including Sequoia India, for expanding its operations and could raise more if required. Since inception, the company has raised USD 51 million.

To read this article visit the below links:

Times Of India:
https://timesofindia.indiatimes.com/business/india-business/awfis-to-triple-number-of-co-working-seats-to-12k-in-pune/articleshow/66511616.cms

MoneyControl:
https://www.moneycontrol.com/news/business/awfis-to-triple-number-of-co-working-seats-to-12000-in-pune-3132901.html

Business Standard
https://www.business-standard.com/article/pti-stories/awfis-to-triple-number-of-co-working-seats-to-12k-in-pune-118110500758_1.html

Outlook:
https://www.outlookindia.com/newsscroll/awfis-to-triple-number-of-coworking-seats-to-12k-in-pune/1416208