Hyderabad: Incuspaze, a chain of co-working spaces that sprawls over an area of 4 lakh sq ft across ten cities of India with 20 centres, is going to foray into Hyderabad with its first facility expected to be operational by early March this year in Gachibowli. The Hyderabad facility will have a 300-seat capacity spread over an area of over 12,000 sq ft.
Sharing what attracted the company to Hyderabad, Sanjay Choudhary, CEO & founder, Incuspaze, told Telangana Today, “The city has become the most lucrative market for commercial real estate. The maximum REIT (real estate investment trust) investments are projected to happen in Hyderabad. Also, the city is high in terms of per capita commercial real estate investment. These trends are very clear that there is a growing interest among enterprises as well as startups. We anticipate that in terms of occupancy in our facility, 70 per cent would be enterprises while the remaining 30 per cent will be SMEs and startups. These enterprises could also include large-funded startups.”
The company, with 93 per cent occupancy rate pan-India, has established facilities in cities including Delhi, Mumbai, Gurugram, Indore, Lucknow, Trivandrum and Kochi. It is now aggressively exploring southern markets such as Hyderabad, Chennai and Bengaluru.
Hyderabad will be the 11th city for Incuspaze to launch its centre, while setting up other centres in Ahmedabad and Vadodara. It is looking to expand presence to 23 cities pan-India, by the end of 2020, with a cumulative 15,000-seat capacity. By June, the company will add at least five cities-Pune, Coimbatore, Visakhapatnam, Jaipur and Patna.
The company will also foray into London and Dubai by third quarter of 2020. To meet the expansion, the company is looking to raise $5 million.
Explaining the co-working demand patterns, he said, “We are growing aggressively on both the enterprise managed workspace as well as co-working for startups. In terms of the seat occupancy, enterprises occupy 65 per cent while the startups occupy the remaining 35 per cent. The ratio of enterprises is expected to go up as their seat requirement is high. There are even enterprises which are approaching us for about 800 seats for whom we are creating dedicated spaces. Co-working is no more a real estate play by putting together fancy furniture. It is evolving as a service industry with operations very similar to hotel industry and a focus on occupancy.”
“Larger enterprises are looking for managed workspaces with more customisation as the seat occupancy is going beyond 50 to several hundred seats, with a specific requirement of security and IT. These enterprises are seeing value in such managed workspaces where they don’t have to deal with multiple vendors and can just focus on their core operations,” he added.
Enterprises are increasingly looking for data, IT and hardware security. These companies are less worried about the price per seat and are more concerned about the security infrastructure.
Choudhary said, “We take a call on IT security even before we decide on the layout of the centre. It has become extremely critical. We find out if they need a dedicated server, double security or do they need extra software or hardware. We are also doing complete office automation in our facilities with full customisation. We are roping in a Hong-Kong based supplier for automating a complete workspace. Hyderabad centre is very well on the cards for this.”