BHIVE Workspace, claiming to be one of the largest coworking spaces in Bengaluru, has made its entry into the business of renting of commercial office space through zero renting model.
The firm has on boarded 4 lakh sqft of office space on its platform, including coworking spaces, furnished offices and bare shell rental models (which have basic facilities) over the last month in Bengaluru.
"Platform model makes us scalable. We have additional 10 lakh sqft of commercial space under negotiation," said Shesh Rao Paplikar, co-founder and chief executive officer at BHIVE.
As per the company’s estimate, the size of both organized and unorganised office space market is 600 mln sqft. "Properties owned by Individual landlords market is something which we would be strongly addressing and help bring efficiency there, said Paplikar.
The Bengaluru headquartered firm aims to capture at least 1% of this market in under 2 years from now and grow exponentially from there," he said.
Under the co-working model, BHIVE operates seven co-working space totaling to 1500 seats in Bengaluru. "We have signed another six co-working spaces under managed franchise model and look to add 200 seats every month," said Paplikar.
In coworking space domain, BHIVE competes with the likes of WeWork, Cowrks, 91Springboard, Innov8, Awfis.
BHIVE has raised over $2.5 million so far from the likes of Blume Ventures, Raghunandan of TaxiForSure, Arihant Patni, Ramesh Aravind. It is also backed by real estate developers like Sanjay Mirchandani of Mirchandani Group and Y Meera Reddy of SKCL.
Flexible office operators are seeing tough competition with some large companies in this rolling out huge expansion plans over the next 18 months.
While, Cowrks and Awfis is targeting to open 25000 seats and 40,000 by mid 2019. The global flexible office space operator Wework plans to have 35000 seats by end of this year. Indiqube also plans to add 1 mln sqft of flexible office by end of next year.
According to CBRE, in the next few years, with office rents continuing to move up across India, the total space leased by co-working operators in tier 1 and tier 2 cities could touch 6-10 mln sqft by 2022.