Coworking and flexible working space provider ABL Workspaces has raised INR 15 Cr ($1.9 Mn) in Series A funding from Canada-based Ethik Inc.
Founded in 2017 by Akshita Gupta, Delhi-based ABL Workspaces offers coworking spaces with premium interiors to startups, working professionals, and mid-sized companies in nine locations across Delhi-NCR. Its customers include Kotak Bank, Simba Beer, Netambit, Clovia among others. According to the startup, it has seen a 20-50% clientele surge in the past six months.
The startup will utilise the freshly-raised capital towards expanding its seating capacities and centres across the capital region. It will also use the funds raised to develop its team and technology.
“We believe that co-working is a game-changer for the entrepreneurial community. The segment is promising and has attracted the attention of potential investors. ABL Workspaces offers cost-effective, premium, tech-enabled co-working spaces,” said Deepak Goel, founder at Ethik Inc.
The shift towards more accessible, flexible and affordable working spaces has contributed to the success of coworking startups in the past few years. The disruption caused by the pandemic is being seen as a temporary setback by many in the industry, who are expecting a resurgence once the county’s economy recovers.
Many companies, especially startups, struggle with the burden of long-term leases that come with heavy security deposits—as these tend to take away from the cash flow of the business. This could even be a reason for traditional companies to consider coworking spaces as a viable option.
This is not to say that startups in the space will continue to function the same way it has before—the pandemic and its ramifications have forced a fundamental change in the way coworking spaces operate. Earlier, their main proposition was the efficient use of space. Going forward, the need for social distancing will mean each seat will occupy a larger area.
Concerns about health and safety are also expected to create a demand shift towards private spaces. As a result, coworking startups might have to convert open-plan spaces into separate private spaces.
Another player in the coworking space, WeWork India had raised INR 200 Cr in debt and equity in April this year, hoping to turn profitable after a long and tumultuous period when the startup made the news for all the wrong reasons.
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