Strategic Expansion: Unveiling the Motivation Behind Onward Workspaces’ Growth in Delhi NCR

CXOToday has engaged in an exclusive interview with Suvrat Jain, Founder & CEO of Onward Workspaces

1. Can you elaborate on the motivation behind the expansion in the Delhi NCR region and the factors that influenced this decision? 

As being one of Asia’s leading office space markets, India accounts for about 50% of the region’s total demand. The flex workspace segment in the commercial office market is on a steep rise and earmarked to increase from 7% in 2023 to approximately 12% by 2028, according to Avendus Capital, showcasing a robust growth path for the future. Looking at the humongous market size, we saw an enormous opportunity to dive into and envision to work toward being an influential thought leader disrupting the co-working spaces in the coming years. The motivation to announce the recent expansion in Delhi NCR regions were driven by the following

1. Rising Demand for Flexible Workspaces: The growth of startups, freelancers, and remote work culture in the Delhi NCR region has led to increased demand for flexible, affordable, and well-equipped office spaces. Businesses are seeking alternatives to traditional long-term leases, preferring flexible options that co-working spaces provide.
2. Location Benefits: Delhi NCR, comprising Delhi, Gurgaon, Noida, and surrounding areas, is a significant commercial hub with a diverse pool of industries, including technology, finance, and media. Expanding here allows Onward Workspaces to tap into a large market of professionals and businesses looking for flexible office solutions
3. Improved Infrastructure and Connectivity: Delhi NCR has witnessed significant improvements in infrastructure and connectivity, with the metro network, and better public transport options. This makes it easier for professionals to commute.
4. Post-Pandemic Shift in Work Preferences: The COVID-19 pandemic has changed how businesses and employees view office space. Many organizations are adopting hybrid work models, combining remote and in-office work. Onward Workspaces aims to cater to this shift by offering flexible spaces that accommodate varying work preferences.

2. How does Onward Workspaces plan to allocate the 18 crore investment for the expansion?

Key areas: The investment of 18cr is going to be utilized on the following:-

1. Real Estate Acquisition and Leasing
2. Interior Design and Fit-Outs
3. Technology and Infrastructure
4. Marketing and Brand Building
5. Operational Costs
6. Sustainability and Wellness Initiatives

3. What are the triggers for the upswing demand in Flex spaces including co-working spaces?

The demand for flexible spaces, including co-working spaces, has seen a significant upswing due to several key triggers:

1. Shift to Hybrid Work Models: The pandemic accelerated the adoption of hybrid work models, where employees split their time between home and the office. Companies are seeking flexible workspace solutions to accommodate this new model, allowing them to downsize or eliminate long-term leases while providing employees with convenient, collaborative work environments.
2. Cost Efficiency: Co-working spaces offer a cost-effective alternative to traditional office leases. They eliminate the need for large upfront investments in office infrastructure, furniture, and facilities management. Businesses can scale up or down easily based on their needs, reducing fixed overhead costs and allowing for more efficient financial management.
3. Growth of Startups: The rise of entrepreneurship, startups, and the gig economy has created a substantial market for flexible office solutions. Startups prefer co-working spaces for their flexibility, networking opportunities, and access to professional amenities without the burden of long-term leases.
4. Focus on Flexibility: In an unpredictable business environment, companies are prioritizing agility. Flexible spaces allow businesses to quickly adapt to changing circumstances, such as scaling operations up or down, expanding into new markets, or setting up satellite offices in different cities.
5. Community and Collaboration Opportunities: Co-working spaces foster a sense of community, offering opportunities for networking, collaboration, and knowledge-sharing. For many professionals, especially in creative and tech industries, these benefits enhance productivity and innovation, driving demand for spaces that encourage interaction and cross-industry collaboration.

4. How Co-Working Spaces are Redefining Corporate Culture for MNCs & Fortune 500 companies

Co-working &Managed office spaces are observed as the most popular type of flex spaces which helped the flex industry growth to be catapulted to its optimum potential. But both these types of flex spaces types cater to different business needs and preferences. Managed office spaces provide tailored, fully furnished offices leased to companies seeking dedicated and customized work environments. These spaces often include comprehensive services such as IT support, administrative assistance, and facility management, making them ideal for larger enterprises or businesses looking for a professional setting without the hassle of office management.

Co-working spaces, once seen as the domain of startups and freelancers, are now transforming the way MNCs and Fortune 500 companies operate, courtesy to its cost effective & tailored made solutions. These spaces offer more than just a flexible office solution; they are catalysts for cultural shifts within large organizations. By embracing co-working environments, these corporate giants are redefining their corporate culture to be more agile, innovative, and employee-centric.

Corporate partnerships will see co-working providers collaborating with large corporations, offering flexible workspace solutions that benefit both parties.

One of the key drivers behind the adoption of co-working spaces by MNCs and Fortune 500 companies is the need for flexibility. Traditional office leases often lock companies into long-term commitments, limiting their ability to scale up or down as needed. Co-working spaces provide the flexibility to expand or reduce office space quickly, aligning with project needs or market conditions. This adaptability is crucial in today’s fast-paced business environment, where companies must be nimble to stay competitive.

Co-working spaces are designed to foster collaboration and innovation, two critical elements for success in today’s economy. These spaces break down the barriers of traditional office layouts, encouraging spontaneous interactions between employees from different departments or even different companies. This cross-pollination of ideas can lead to breakthroughs that might not occur in a more siloed environment. For MNCs and Fortune 500 companies, co-working spaces offer a unique opportunity to inject a startup mentality into their corporate culture, driving innovation from within.

Co-working spaces cater to these needs by offering a more relaxed and engaging work environment compared to traditional corporate offices. Features like on-site gyms, wellness programs, and networking events help to enhance the employee experience, making co-working spaces attractive to top talent. For large corporations, leveraging co-working spaces can be a strategic move to attract and retain employees, particularly among younger generations who prioritize these aspects of work culture.

By moving into co-working spaces, MNCs and Fortune 500 companies are signaling a shift in their corporate identity. These organizations are no longer just seen as rigid, hierarchical entities but as dynamic, forward-thinking companies that embrace change. Co-working spaces help to humanize these large corporations, making them more approachable and relatable. This redefinition of corporate identity is essential for companies looking to stay relevant in an increasingly competitive market.

More importantly, For MNCs and Fortune 500 companies, co-working spaces offer significant cost benefits. By avoiding the long-term leases and overhead costs associated with traditional office spaces, these companies can reduce their real estate expenses. Moreover, co-working spaces offer operational agility, allowing companies to quickly set up offices in new markets or close them down as needed. This agility is particularly valuable for companies looking to expand globally or enter emerging markets.

5. What strategies has Onward Workspaces employed to distinguish itself from other coworking space providers in the market?

Onward Workspaces has implemented several key strategies to differentiate itself from other co-working space providers in the competitive market including

1. Customizing and Flexible Workspace Solutions that could be tailored made basis the requirement of startup & Fortune 500 companies needs
2. Premium Locations and Accessibility

To stand out, Onward Workspaces strategically chooses premium locations in key business districts and accessible areas across the Delhi NCR region. These locations offer excellent connectivity, proximity to public transport, and easy access to a vibrant local ecosystem of businesses, restaurants, and other amenities, making them convenient and attractive for clients.

3. State-of-the-Art Technology and Infrastructure

To cater to modern businesses, Onward invests in state-of-the-art technology and infrastructure, including high-speed internet, advanced security systems, smart office solutions, and digital collaboration tools. This focus on technology ensures that clients have access to a seamless and efficient work environment, supporting both remote and hybrid work models.

4. Superior Customer Service and Personalized Support
5. Value-Added Services and Amenities

Beyond the standard co-working offerings, Onward provides a range of value-added services, including concierge services, IT support, virtual office solutions, mail handling, and business consultancy. These additional services help businesses focus on growth while leaving the day-to-day operational aspects to Onward.

6. Strong Focus on Security and Privacy
7. Targeted Market Segmentation

Onward employs targeted market segmentation strategies to attract specific client groups, such as technology startups, creative agencies, freelancers, and established enterprises. By understanding the unique needs of these segments, Onward designs customized packages and services to cater to their requirements, effectively differentiating itself from competitors.

8. Focus on Niche Markets and Industries

6. Can you provide some insights into your client acquisition strategy and how you’ve been able to attract major clients like Thermax Ltd, Aramex, and VLCC?

1. Targeted Outreach and Relationship Building

Onward focuses on building strong relationships with key decision-makers within target organizations. This involves personalized outreach through networking events, industry conferences, and direct engagement. By positioning itself as a partner rather than just a service provider, Onward establishes trust and credibility, which is crucial for attracting major clients.

2. Customized Solutions for Enterprise Clients

For clients like Thermax Ltd, Aramex, and VLCC, Onward provides bespoke office setups, flexible leasing terms, and exclusive amenities that align with their business goals. This level of customization helps demonstrate Onward’s commitment to understanding and accommodating each client’s unique requirements.

3. Leveraging Premium Locations

These locations offer excellent connectivity, proximity to other major businesses, and access to high-quality local amenities, which appeal to large clients looking for prestigious addresses and convenient locations for their teams.

4.Offering Value-Added Services and Amenities

To attract and retain major clients, Onward provides a range of value-added services, including virtual office solutions, IT support, event management, and business consultancy. These services add significant value for large clients, who benefit from a comprehensive package that goes beyond just providing physical space.

7. How do you foresee the future of workspaces evolving, especially in the context of hybrid work models and remote work trends?

1. Flexible and Adaptable spaces: Workspaces will likely become more flexible to accommodate both in-person and remote workers. This could mean a shift towards multi-functional areas that can be easily reconfigured for different purposes, such as meetings, collaborative sessions, or quiet, individual work.
2. Technology-Driven Environments: Advanced technology will play a central role in supporting hybrid work. Workspaces will need to be equipped with high-quality video conferencing tools, digital whiteboards, and collaboration software to seamlessly integrate remote and on-site employees.
3. Emphasis on Collaboration and Community: With remote work becoming more common, physical workspaces will focus on providing value through face-to-face interactions, fostering community, and creating opportunities for collaboration and networking. Expect to see more areas designed for social interaction, team-building activities, and informal meetings.
4. Sustainability and Smart Design: Sustainable design practices will become more prevalent, with workspaces incorporating energy-efficient lighting, renewable materials, and smart building technologies to reduce their carbon footprint.
5. On-Demand and Membership-Based Models: Flexibility in lease terms and workspace usage will become essential. Companies and employees might prefer on-demand access to workspaces or membership-based models that allow them to use different locations as needed.

8. What are Onward Workspaces’ long-term goals, and where do you see the company in the next five to ten years?

1. Expanding Physical Presence: Onward Workspaces may aim to establish a network of locations in key cities or regions, catering to a wider range of professionals and industries. This expansion could involve opening new facilities or partnering with existing coworking spaces to create a consistent brand experience across locations.
2. Enhancing Member Experience: A continued focus on delivering excellent customer satisfaction could lead to further investments in technology, amenities, and services that enhance the member experience. This could include developing a dedicated app for booking spaces, connecting with other members, and accessing exclusive content or events.
3. Investing in Technology and Infrastructure: To support seamless remote and hybrid work, the company could invest in advanced technological solutions, such as smart office systems, AI-driven analytics for space optimization, and state-of-the-art video conferencing tools. This would enable Onward Workspaces to offer a cutting-edge environment that meets the needs of a future-ready workforce.
4. Launching New Products and Services: Onward Workspaces may expand beyond traditional coworking by offering tailored services like virtual office memberships, business consultancy, or specialized programs for startups and freelancers. This diversification could help the company attract a broader customer base and create new revenue streams.
5. Becoming an Industry Leader: Over the long term, Onward Workspaces could aim to establish itself as a thought leader in the coworking industry, leveraging its experience to provide insights, research, and best practices. This could involve partnerships with academic institutions, thought leadership content, or hosting major industry events.

By pursuing these goals, Onward Workspaces can position itself as a dynamic, innovative, and customer-centric leader in the coworking space industry, making a lasting impact on how people work and connect in a rapidly evolving world.

9. How do you stay ahead of industry trends and ensure that Onward Workspaces remains innovative and competitive?

We believe for staying ahead of industry trends and ensuring to remain innovative and competitive in India requires a combination of proactive strategies, constant adaptation, and a deep understanding of the market.

JLL India also cited in an recent study that technology adoption in co-working spaces is expected to increase significantly, with IoT and AI playing a critical role in optimizing space utilization and improving user experience. Thus, We at Onward try to evolve with perpetually investing in the latest technology, such as, IoT, AI etc to revolutionize workspace management, virtual offices, and smart building systems to enhance operational efficiency and provide a seamless experience for users.

Looking at the growth demand basis a recent report by CBRE India, which highlighted “75% of companies are expected to adopt a hybrid work model, driving the demand for flexible and customizable co-working spaces.”  Echoing the sentiment, We at Onward take a dynamic approach while planning and strategizing our growth path and keep up with the evolving needs of the workforce, such as the growing demand for hybrid work models.

Looking at the significance of sustainability increasingly in leaps and bounds and becoming a priority for businesses in India, We at Onward Workspaces try to Implement sustainable practices, such as using energy-efficient systems, recycling programs, and sourcing eco-friendly materials for interior design which not only reduces operational costs but also appeals to environmentally-conscious clients.

Offering Tailored made solutions being a USP at Onward Workspace, We believe to continuously invest in innovating our offerings whilst devising aesthetically pleasing designs that reflect the brand’s identity and cater to the preferences of the modern workforce and which simultaneously help in carving an environment which yields optimum level of productivity and thus boost the success rate of the startups & companies