Not just start-ups, Internet firms to go for co-working spaces

23 January 2017

Not just start-ups, Internet firms to go for co-working spaces

  • The Financial Express

It isn’t just start-ups that prefer co-working spaces. Big firms, too, are attracted by the value-added services these places offer

E-commerce firm Snapdeal shut down its Malad office in Mumbai last year in October, to move to a new office in Andheri West. However, the only difference was instead of moving into a space owned by the firm, the team moved into a co-working space run by Awfis. Currently, about 90 Snapdeal employees work in Awfis’ office.

If earlier the role of a co-working space was well-defined, so was its clientele that largely comprised start-ups which, after taking their first step in the world of technology, wanted a rather cheaper roof over their heads. Not any longer. In fact, even companies in the business of providing co-working space have realised how large firms too are eying a spot in their offices.

Innov8, which will be opening a new co-working space in Bengaluru soon, claims to have created the space keeping in mind the demand of large firms. “There will be many private offices in the upcoming space in Bengaluru to meet the needs of bigger companies,” said

Russell Longjam, head of marketing, Innov8 Co-working. At Awfis, Snapdeal isn’t the only big internet firm to shift its team to a co-working space. Online classifieds firm OLX also has a 10-member team operating from Awfis Bengaluru. Meanwhile, a traditional firm such as BNP Paribas—a financial services company—too, has joined the co-working space revolution.

“Compared to setting up one’s own office, which would require a company to invest in rental, and other basic office infrastructure, booking a couple of chairs in a co-working space requires less investment. Hence, now large firms such as Snapdeal and OLX amongst others have started using the shared space,” said Amit Ramani, founder and CEO, Awfis.

Headquartered in Delhi, Awfis Space Solutions currently has 14 offices with 3500 seats. The co-working space provider has rolled out many packages for companies depending on their needs. For example, the rent of a cabin for a month with four to six seats is R9000-14000 a month. It also sells fixed seats (specific seats with alloted desktops) at R8000-10,000 a month, while flexi seats are being leased out for R4500-6500, a month.

“We plan to increase the number of seats to 7000 by March 2017 and 25,000 seats by 2018,” added Ramani.
Similarly, OneInternet is another firm which provides co-working space in locations such as Connaught Place in Delhi, besides Gurgaon where it has a 7000 sq feet office area and Bengaluru where it runs an office space of 25,000 sq feet. In a prime location such as Connaught Place, the company charges a rental of R7500 for a cabin with two seats. It also runs several packages for short duration, apart from selling individual seats.

“For instance, at a price of R8999, excluding taxes, a person can book one seat for 18 days,” said Himanshu Bindal, founder, OneInternet. While 80% of companies using OneInternet are start-ups, the rest are small and medium enterprises.

According to Bindal, OneInternet offices have 95% occupancy during the day and 75% at night. Day rentals come for a lower price. For Venture Catalyst, which operates a co-working space in Mumbai, these spaces also work as a centre for cross pollination. “On one hand you have start-ups setting up their operations, on the other there are companies which provide human resource services and accounting services to the same set of start-ups setting up operations,” said Apoorv Ranjan Sharma,co-founder and president, Venture Catalysts.

However, with too many players in the game now, co-working spaces have evolved beyond providing just a space and basic office amenities to offer value-added services.

“We have tied up with Amazon Web Services. The tie-up allows us to provide free credit to start-ups, further allowing them to use the cloud service. Additionally, we have facilities such as personal gym, break out spaces, etc,” said Bindal.

Meanwhile, Awfis claims to have cut deals with restaurants such as Haldirams and online food apps such as Fassos, apart from holding different food festivals. “These tie-ups allow the employees to avail discounts at various restaurants,” explained Ramani of Awfis.

Even as more players continue to emerge in the business of co-working, for Ramani and his contemporaries who started early in the business, the real game is about scaling up operations.

Agrees, companies like The Workforce Consulting Group, a human resource consultancy. “Instead of keeping the entire team under one roof, working out of a co-working space allows us to split the team so that they can be near key clients, which increases efficiency. Also, using a co-working space brings down the cost of operations by 50%, which is an added advantage,” said Ruchi Vijay, co-founder, The Workforce Consulting Group. Vijay’s team is based in Awfis’ office in Delhi.

(This Awfis coverage appeared in The Financial Express on January 23, 2017 under the title ‘ Not just start-ups, Internet firms to go for co-working spaces.’ You can read the full story at: http://www.financialexpress.com/opinion/not-just-start-ups-internet-firms-to-go-for-co-working-spces/518507/ )

Covid reinforced need for flexibility & nimbleness

15 March 2021

Covid reinforced need for flexibility & nimbleness

  • Posted by Arathy Nair

How would you sum up Awfis’ journey so far?
When we looked at this landscape in 2015, we saw this as a SME solution, more than a start-up solution because start-ups at that point had less than 100,000 people in the ecosystem. So 60% of the commercial requirement was in SMEs and the rest was large corporate, mid-sized companies etc. So now we said how do we de-risk the model and that’s where the managed aggregation (MA) model came into play. We then started pursuing a part of our portfolio under MA. So between 2015 to 2018, that was the primary journey with SME focus. From 2018 we started seeing the trend of Managed spaces. So then our model evolved a bit where we did co-working centre. Third piece came when Covid happened which is our ability to provide solutions attuned to how people’s behaviour was changing.

 

What is the managed aggregation (MA) model?
It is essentially a profit sharing model where landlord was putting in the investment for infra build up. See one needs to understand that Grade-A real estate in India controlled by Grade-A landlords is 300 million sq ft (MSF) of the total 1 billion sq ft. Everyone talks only about the 300 MSF. India is a value for money market. So what we felt was that for that 700 MSF there was a big opportunity of being curated in the market which nobody was tapping.
Initial days were hard but today our credibility is strong and we are the only player servicing in the market, where you have a Grade-B or B+ facility with smaller floor plates and this could be not just be in CBDs, but in every commercial micro market. I think the fundamental piece is that there is a lack of trust in real estate. So the first thing we did was bring in trust. Second, we built a strong tech platform as well as a strong sales engine. Third, we were able to set up space which was more cost effective compared to others. Currently, MA is 60% of our portfolio and we will take it to 70%.

What has been your learning experience from Covid?
First, core is flexibility and nimbleness. You also have to figure out what if nobody comes back to offices. So those were the questions we were addressing, but at the same time we were pivoting for delivering and staying relevant for the ever evolving customer. For instance, the distributed model, Awfis at home solution, Awfis Transform and Powered by Awfis. We understood what was going to happen. We were able to do it as we were a pan-India player, we were a team of 200 people, we had strong understanding of customer base as well as real estate supply and demand. It’s not that everything worked out, but we evolved very quickly.

What are your expansion plans?
We were 30,000 seats pre-Covid roughly and we will go to 60,000-65,000 seats this year. We will double our footprint from around 2.5 MSF to more than 4 MSF this year. Also we will go from some 67 centres pre-Covid to almost 130 centres in 2021.

What are the challenges and opportunities for flex space?
Recently, JLL India said in a report that currently flex is 3% and will go to 5%. I don’t know what the ultimate percentage would be, but one thing is clear that it will grow from 3% in the next 3-4 years. Hard to predict but my optimistic view is that it will be 10% of the real estate industry. Second is the value of the brand, value of the network and the ability to deliver consistently for like-minded customers is important. Consolidation will happen and will be more with companies shutting shop rather than being acquired. Third, the customer base is not just SMEs and start-ups, but includes everybody even the government.

Final is the preference of workplace. Where work gets done is changing so work near home will become a reality and work from home for a small percentage will become a reality. Distributed work for every company is a reality. Also distributed work including in tier II towns is becoming a reality. For instance, we are getting queries from companies asking for 50 seats as a portion of its employees are working from Ahmedabad.

This story appeared in the February 26, 2021 issue of Financial Express  and was originally published at ‘Covid reinforced need for flexibility & nimbleness’ – The Financial Express

Why businesses need to realign marketing strategies to fit into the new normal

24 February 2021

Why businesses need to realign marketing strategies to fit into the new normal

  • Posted by Arathy Nair

With Covid-19 being the center of all our conversations with stakeholders in 2020, marketing has emerged as the nerve center of a brand’s pandemic response, across sectors. With a need for flexibility and strong internal relationships to navigate changing circumstances, it is imperative for organisations to realise crucial role that marketers play in connecting various parts of any business. From consumer insights and brand positioning, to building engagement and transparent communications, marketing teams, globally have delivered heightened value amidst the pandemic.

 

Adopting new-age channels of communication

In 2020 brands across sectors invested heavily in online marketing activations as compared to prior years, where marketers seemed to prefer a resource split between traditional and online methods of marketing. Even within digital marketing, content marketing was utilised as a key avenue to engage potential consumers beyond the product and maintain high brand recall. As we make our way into 2021, the marketing media mix will become more skewed towards digital media. While the overall marketing spends for real estate have reduced significantly, there is a shift from high investment channels like print, electronic and OOH to digital for its cost-effectiveness. Conventional marketing will continue to see decreased spend even post Covid but digital will see a considerable increase in spends by 50-60% in the future as brands will learn to look at it as the best marketing tool promising ROI evaluation. Most companies who haven’t experienced the power of digital media yet will use this time to lay the groundwork to engage with customers digitally be it through mapping the customer e-journey, creating 360 views or enabling online payments to attract more customers in the absence of site visits.

In 2021, a prominent trend will be the utilisation of machine learning to filter audiences for targeted campaign outreach. Implementation of machine learning in campaigns will help brands to improve both targeting and messaging by marketing to micro-segments with very well identified needs or interests.

Transparency and continued engagement amidst unprecedented times

This year, information sharing emerged as a key trend within campaigns with the growing universal inclination of customers towards sanitization, hygiene and social distancing. Marketers who were able to remain transparent of their policies and processes whilst keeping the end consumers informed about how their brand will ensure maximal safety amidst these times, emerged ahead of the curve. Brands need to be more cautious than ever in their communication with customers, emanating empathy and transparency in just the right amount. Marketing as the custodian of the brand has taken a centre stage in all kinds of communication going out to customers, partners and stakeholders across multiple channels ensuring consistency in the brand voice. The marketing team has become the first responders, whether it is crafting new ways of communication or being part of a Central Response Team to provide consistent messaging to customers. It can be the anchor, the voice of stability in such uncertain times.

In line with the above several brands adopted influencer marketing and advocacy as a key medium of customer outreach to maintain authenticity whilst also building brand equity.

Marketing will become the primary channel for demand generation

With limited budgets, zero business travel and social distancing norms in play, this is the time for marketing to hustle and step up to become the primary demand generation engine for the organisation. Sales will depend on marketing to enhance their reach and bring prospective customers closer to the table. In line with this in 2021, brands will curate 360-degree campaigns that extend beyond traditional advertising mediums and reflect across teams such as customer service and human resources, which deal with the two most integral stakeholders of any brand.

Embracing Agility

The year 2020 was privy to unprecedented times that disrupted all existing business plans, causing businesses across verticals to realign themselves to fit into the new normal. In line with this the year 2021 too, will be the year of constant re-invention. Brands who manage to stay ahead of the curve by adopting emerging trends and catering to the ever-evolving customer will emerge as successful.

This story appeared in the 5 January , 2021 issue of Financial Express and is authored by Sumit Lakhani, CMO, Awfis. This article was originally published at :  Why businesses need to realign marketing strategies to fit into the new normal – The Financial Express

Coworking: This startup makes shared workspaces more affordable for SMEs; launches new offer

16 September 2019

Coworking: This startup makes shared workspaces more affordable for SMEs; launches new offer

  • Posted by Awfis Editorial
Coworking spaces in India will be hosting 13.5 million users by 2020 as the demand for flexible offices – including coworking spaces and serviced offices – is growing faster in the Asia Pacific than anywhere else in the world.

 Coworking space provider Awfis in order to boost its enterprise and SME customer base will offer a 15 per cent discount on work desks (cabins, flexible & fixed seats), 20 per cent discount on meeting rooms and another 15 per cent discount on Awfis Mobility Solution products such as Awfis roaming, National Pass, Virtual office spaces, Bulk Meeting Room Hours etc., for Mastercard business cardholders. The offer would be applicable across the company’s 63 centres in 9 cities.“Coupled with Mastercard’s long-standing experience in electronic payments globally, the association targets to offer tailor-made solutions to drive thriving business opportunities, the company announced in a statement. The partnership with Mastercard allows Awfis “to reach out to the widespread user base through their extended network, which will, in turn, benefit from this collaboration with enhanced opportunities on offer,” said Amit Ramani, CEO & Founder, Awfis.

The development gains significance given the increased focus of the government on helping the MSME sector grow with respect to technology adoption, solving for delayed payments issue along with providing mentoring and handholding in scaling online. “MSMEs are a vital force for propelling India’s journey from cash to digital, and Mastercard’s commercial card business caters to this growing segment,” said Aman Ahuja, Vice President, Market Product Management, South Asia, Mastercard.

Coworking spaces in India will be hosting 13.5 million users by 2020 according to 2018 estimates by real estate services company JLL as the demand for flexible offices – including co-working spaces and serviced offices – is growing faster in the Asia Pacific than anywhere else in the world. “In India, the growth of flexible office space is expected to grow at 40 – 50% in 2018,” according to a JLL report. Around half of 13.5 million users will be from enterprises and would likely acquire 10.3 million seats. Freelancers and SMEs would have 1.5 million users worth of demand even as startups are likely to have a demand of nearly 100,000 seats by 2020.

You can read the published article on:

https://www.financialexpress.com/industry/sme/coworking-this-startup-makes-shared-workspaces-more-affordable-for-smes-launches-new-offer/1703357/

Also published on:

https://www.99acres.com/articles/awfis-to-launch-offer-for-strengthening-sme-customers.html

Awfis Fortifies its Partnership with Mastercard