Start-up GoWork to pump in $1 bn to open 50 shared offices

GoWork, the start-up that offers co-working spaces, plans to invest $1 billion (Rs 6,500 crore) over the next five years in setting up its 50 centres across India. One centre in Delhi will come up by June while another one in Bengaluru will also come up by the end of this year. “We are in initial discussions with private equity players to raise funds,” Sudeep Singh, chief evangelist, GoWork, told DNA Money. The firm had started its commercial operations in November last year with two centres in Gurugram, Haryana at an investment of Rs 800 crore and a seating capacity of 12,000. The facilities are spread across an area of 8 lakh square feet.

GoWork, which offers co-working spaces to corporates, small and medium enterprises, start-ups and entrepreneurs, also plans to start a ‘Frustration Room’ in all its centres, which will help the professionals in managing their stress. One can go to the frustration room which will have sound-proof walls, and shout loudly or can just break things kept in the room to vent their anger or stress, Singh elaborated. As of now, the company plans to keep an old car for breaking with a hammer and safety gloves.

We are also in discussions with other firms to set up a creche facility in our centres, which will support working mothers as well as single parents, he said. GoWork already has Cox & Kings, Lifelong, Impactify, Flying Fur, WIP and Fixxoo as their clients. The start-up, which is in talks to raise $150-200 million with private equity firms this year, had raised its first round of funding from a family group  Nimitaya Group.

GoWork operates on 80:20 model of ownership and leasing of spaces, and going forward, will maintain this, Singh said. The company wants to be present in every metro in the next five years apart from other cities and towns.

The idea of co-working spaces has been gaining momentum in India. The total space leased by co-working operators in tier-I and tier-II cities is expected to reach almost 6-10 million square feet by 2020, as per CBRE.

By Mansi Taneja, DNA