CXOToday has engaged in an exclusive interview with Mr Robin Chhabra, Founder and CEO- Dextrus.
- The co-working market in India is projected to reach USD 1.94 billion by 2024. What key factors do you believe are driving this growth?
Key Reasons driving growth of coworking spaces
Growth of Tier-2 and Tier-3 cities
Firstly, economic growth and technological advancements in tier-2 and tier-3 cities have created a fertile ground for the expansion of coworking spaces. As these regions experience increased economic activity and improved connectivity, they attract startups and small businesses looking to capitalize on new opportunities without the overhead of traditional office spaces. The availability of advanced tech infrastructure has made it feasible for businesses to operate efficiently outside major metropolitan hubs.
The burgeoning gig economy
There is a surge in startups, freelancers and SMEs significantly contributing to the demand for coworking spaces. These flexible work arrangements require adaptable and affordable workspace solutions, which coworking spaces provide in abundance. By offering a collaborative environment that fosters innovation and networking, coworking spaces cater to the needs of the gig economy’s dynamic workforce.
Flexibility in terms of agreement
Unlike conventional office leases, coworking agreements are typically short-term and adjustable, allowing businesses to scale up or down as needed. This flexibility, combined with reduced business overheads and lower costs, makes coworking spaces an attractive option for cost-conscious entrepreneurs and small business owners.
Bouquet of services:
Furthermore, coworking spaces offer comprehensive services including utilities, high-speed internet, tech support and maintenance. This all-in-one approach simplifies operations for tenants, allowing them to focus on their core activities without being bogged down by logistical concerns.
Community building:
Lastly, the collaborative and supportive community fostered within coworking spaces is invaluable. By bringing together individuals from diverse fields, these spaces promote networking, knowledge sharing and mutual support, enhancing both personal and professional growth.
- Can you share your thoughts on the future trajectory of the co-working industry in India? Where do you see it heading by 2030?
India at the center of globalization
India, poised at the heart of globalization, is expected to experience remarkable economic growth, with its GDP projected to surpass $7 trillion. This economic surge will likely fuel the expansion of coworking spaces, as businesses seek flexible, cost-effective office solutions in a rapidly evolving market.
Shift in preference towards co-working:
Multinational corporations (MNCs), alongside Indian enterprises, are increasingly shifting towards coworking environments. This trend is driven by the need for agility and innovation in a competitive landscape. Coworking spaces offer a dynamic environment that supports collaboration and adaptability, crucial for MNCs and emerging Indian companies looking to scale efficiently.
Increased Government support:
Government initiatives play a critical role in this shift, with increased support for entrepreneurship through various funds, grants and incentives. These measures are designed to foster a thriving startup ecosystem, encouraging new businesses to adopt coworking models that provide flexible and affordable office space solutions.
Developers strive to meet MNC requirements:
The development of international-grade commercial properties, with a focus on sustainability, is another factor shaping the future of coworking. As environmental consciousness grows, coworking spaces are incorporating green practices and sustainable design principles, aligning with global trends towards eco-friendly infrastructure.
Host of amenities to make work smoother:
Coworking spaces are increasingly preferred for their comprehensive amenities, cutting-edge technology, privacy options and vibrant community atmosphere. This combination of features makes them an attractive choice for diverse business needs, from startups to established companies.
Plethora of custom options to choose from:
The coworking sector is diversifying its offerings to cater to the evolving needs of businesses. From tailored office solutions to specialized facilities, coworking providers are expanding their range of services to accommodate different sectors and work styles.
- Dextrus is about to launch its 3rd center at ONE BKC. Could you tell us more about this new location and how it aligns with your growth strategy?
Located in One BKC, the center spreads across 12,000 sqft and offers 300 seats. As part of the expansion and keeping design at the core of its functioning, Dextrus Workspaces will further strengthen its Build By Dextrus offering and customized office solutions wherein they design, build, and operate an office space, taking away clients’ hassle of coordinating with design firms, contractors, vendors for the build and eventually the ongoing operations and maintenance of an office space.
At the new center, along with a customized office space, clients also get access to the advantages of a coworking space such as meeting rooms, breakout spaces, cafe and pantry, phone booths etc. An aesthetically designed space replete with state-of-the-art infrastructure and end-to-end services and utilities, Dextrus, One BKC will help create an ambiance where individuals and teams can totally focus on work and productivity.
Talking about the new center, Robin Chhabra, Founder, CEO, Dextrus, said, “At Dextrus, it has been our constant endeavor to design spaces that would meet all kinds of client requirements. With our new center, we look forward to welcoming new clients and expanding our presence in Mumbai’s most coveted location – Bandra Kurla Complex. We are optimistic that our design-oriented approach will fuel creativity and elevate the overall workplace experience.”
- What distinguishes Dextrus from other co-working spaces in the market, particularly in the premium luxury segment? What has been your biggest challenge in expanding Dextrus and how have you overcome it?
Dextrus USPs:
Strategic Location:
One of Dextrus’s most significant advantages is our choice of strategic locations. Positioned in prime business districts like Bandra Kurla Complex (BKC) and Lower Parel, we ensure that our clients are at the heart of thriving economic hubs. This accessibility not only simplifies commuting but also enhances networking opportunities and business visibility.
Leveraging efficiencies through Shared Economy:
Embracing the principles of the shared economy, Dextrus maximizes operational efficiencies for our clients. By providing shared resources and amenities, such as conference rooms, high-speed internet and office equipment, we reduce overhead costs and ensure that businesses only pay for what they use. This model fosters cost savings and contributes to a more sustainable business operation.
Customized and Flexible Office Solutions:
At Dextrus, we understand that every business has unique needs. Our customized and flexible office solutions are designed to adapt to various requirements, whether it’s a private office for a growing startup or enterprise solutions for established corporations. This flexibility allows companies to scale up or down with ease, ensuring they always have the right space to meet their needs.
Optimized Productivity through Design:
Our workspaces are meticulously designed to enhance productivity. From ergonomic furniture and well-thought-out layouts to modern décor and natural light, every aspect of our design aims to create an environment that fosters focus, creativity and collaboration.
Dedicated Service and Support:
Exceptional service is at the core of the Dextrus experience. Our dedicated support team is available to address any issues promptly, ensuring a smooth and seamless experience for our clients. Whether it’s technical support or administrative assistance, we are committed to providing top-notch service that meets the highest standards.
Challenges in market and How Dextrus overcomes them
Flexibility in Space:
One of the major challenges in the coworking market is providing flexibility in workspace arrangements to accommodate varying business needs. Dextrus addresses this challenge through meticulous design and planning. Our spaces are designed to allow for easy expansion or contraction, ensuring that businesses can scale up or down without significant disruption. By incorporating modular furniture and adaptable layouts, we offer a dynamic environment that adjusts to the changing demands of our clients.
Customization of Design:
Another challenge is tailoring office designs to reflect a client’s unique company culture, especially for smaller spaces. Dextrus excels in this area by offering design customization even for offices as small as 20 desks. Our approach includes working closely with clients to understand their brand identity and integrating bespoke design elements that enhance their workspace. This ensures that even smaller offices can embody the client’s culture and values effectively.
Flexibility in Amenities:
Providing flexibility in choosing amenities to suit diverse budgets is crucial in the coworking sector. Dextrus meets this challenge by offering a range of amenity options that clients can select based on their specific needs and budget constraints. Whether it’s premium facilities or essential services, our clients have the freedom to customize their amenity packages to align with their operational requirements and financial considerations.
Sourcing the Right Property:
Identifying and securing the right property in a prime location is a significant challenge. Dextrus overcomes this by leveraging a strategic approach to real estate. We focus on thorough market research and analysis to find properties that offer both prime locations and the potential for high client demand. Our expertise in property sourcing ensures that we secure spaces that not only meet our clients’ needs but also enhance their business operations.
- The conversation around the concessional rate of TDS and extended tax holidays for startups has been gaining traction. How do you think these policies could impact the co-working industry?
Start-ups in India:
The landscape of entrepreneurship has seen remarkable growth over the past decade, with the number of recognized startups soaring from 450 in 2016 to over 127,000 by April 2024. This exponential increase underscores the dynamic spirit of innovation and business development in today’s market.
Government Initiatives:
Government initiatives have played a pivotal role in this entrepreneurial boom. Measures such as concessional rates of Tax Deducted at Source (TDS), extended tax holidays and various funding schemes have been crucial in supporting startups. These incentives help ease the financial burdens on new ventures, providing them with the resources and stability needed to thrive. Tax incentives and funding schemes, in particular, offer startups the crucial backing to navigate their initial challenges and scale their operations effectively.
Burgeoning economy:
India’s strategic position as a hub of globalization and its projected economic growth to become the third-largest economy, worth $5 trillion by 2028, further highlight the significance of startups. These enterprises are set to play a central role in driving economic expansion and boosting the country’s GDP. As the economy grows, startups will contribute to this expansion by introducing innovative products and services, creating jobs and fostering competition.
Co-working and Start-ups:
The coworking industry has emerged as a vital supporter of startups. Offering flexible workspace solutions, modern amenities and networking opportunities, coworking spaces have become the preferred choice for many new businesses. These spaces provide an environment conducive to collaboration and growth, essential elements for startups navigating their early stages. As the number of startups continues to rise, the demand for coworking spaces is expected to increase, reflecting the sector’s integral role in the entrepreneurial ecosystem. In conclusion, the synergy between government support, India’s economic ambitions and the evolving coworking industry creates a robust foundation for the continued success and growth of startups, positioning them as key drivers of economic progress.
- India is the fastest-growing flexible office market in the APAC region. What competitive advantages does the Indian market have over other regions?
Coworking in India VS APAC
India’s wealth of skilled professionals
The country boasts a vast pool of talented individuals across various sectors, creating an attractive market for flexible workforce solutions. Startups, freelancers and established companies alike benefit from this diverse talent pool, making coworking spaces in India highly sought after.
Government initiatives bolster growth
The Indian government is actively stimulating business expansion and entrepreneurship through favorable policies and incentives. These efforts include financial support, tax benefits and regulatory reforms designed to ease the operational burdens on new ventures. This supportive environment enhances the appeal of coworking spaces as viable options for businesses looking to minimize initial costs and leverage governmental advantages.
Nurturing innovation and technology:
The country is home to a burgeoning tech industry and a vibrant startup culture, which drives demand for coworking spaces that offer cutting-edge amenities and collaborative environments. This emphasis on technology and innovation aligns well with the needs of modern startups and tech professionals, making Indian coworking spaces particularly attractive.
Customized workspace solutions:
Cost efficiency is another significant advantage. The reduction in space rentals through shared office models helps lower fixed overheads for businesses. By offering flexible and cost-effective solutions, coworking spaces in India address the financial constraints faced by many startups and small businesses, making them more accessible and sustainable. Furthermore, the growth of the “Micro Office” market in India illustrates the sector’s adaptability. These smaller, flexible office spaces cater to the evolving needs of businesses, providing a more personalized and scalable workspace solution.
How Dextrus will compete in the market:
Selective Location Choices:
Dextrus understands that the choice of location is critical to the success of premium managed workspaces. By carefully selecting prime, high-demand areas, Dextrus ensures that its spaces are not only accessible but also situated in vibrant business hubs. This strategic positioning attracts high-caliber clients who seek prestigious addresses and convenient access.
Design Leadership:
Leveraging design leadership is central to Dextrus’s strategy. The company is committed to creating aesthetically pleasing and functional workspaces that capitalize on shared economy efficiencies. By integrating cutting-edge design with practical features, Dextrus can offer environments that foster productivity and collaboration while maximizing the use of space and resources.
Focus on Flexible Office Solutions:
Flexibility remains a cornerstone of Dextrus’s offerings. In a rapidly changing business landscape, the ability to adapt to different needs is essential. Dextrus’s focus on flexible office solutions ensures that clients—from startups to established enterprises—can scale their operations seamlessly and adjust their space requirements as needed, thereby enhancing client satisfaction and retention.
Custom Design USP:
Dextrus’s unique selling proposition lies in its custom design capabilities. Understanding that every business has distinct needs, Dextrus excels in tailoring workspaces to suit specific client requirements. This personalized approach not only meets but exceeds client expectations, setting Dextrus apart from competitors in the premium workspace market.
Service and Support:
Exceptional service and support are at the heart of Dextrus’s strategy. By providing top-notch customer service, including responsive support and proactive management, Dextrus builds lasting relationships with its clients. This commitment to high-quality service ensures that clients experience smooth operations and feel valued, reinforcing Dextrus’s reputation as a premium workspace provider.
- Who are the primary users of Dextrus spaces? Have you noticed any changes in the type of clients using co-working spaces over the past few years?
Dextrus Clientele:
Dextrus has carved a niche in premium coworking space business. We predominantly have enterprise clients since coworking has proven to be advantageous for them. One of the primary benefits is the reduced time commitment towards real estate. Traditional office setups often involve lengthy lease negotiations, complex build-out processes and ongoing maintenance challenges. In contrast, these aspects get streamlined through ready-to-use office environments allowing enterprises to focus on their core business activities. Another significant advantage is the hassle-free administration since key aspects of office management, utilities and technology maintenance are managed by Dextrus. Clients get a fully equipped and operational workspace without the typical overheads of traditional office management. Dextrus being strategically located in prime areas ensure that clients and their staff have access to convenient locations with excellent transport links enhancing productivity and employee satisfaction. Recently, there has been a noticeable shift in client requirements from single or double-seat fixed desks to private offices and larger spaces tailored for enterprise needs. This evolution reflects a growing demand for more customized and scalable workspace solutions, which Dextrus adeptly provides.
Productivity enhancers at Dextrus:
We provide a comprehensive range of amenities tailored to enhance experience and productivity. Each of these are designed to cater to customer convenience, ensuring a productive and comfortable experience in our facility.
Café & Pantry space is designed to accommodate events of all styles with a capacity of close to 100 and is equipped with AV facilities and FnB services, community board for announcements, celebrations and events, satellite pantries for quick access to essentials throughout the workspace.
Our Meeting Rooms are designed with utmost flexibility and functionality. These meeting rooms are fully serviced and equipped with modern technological solutions. From intimate gatherings of five to large-scale assemblies of up to a hundred participants, each room is adaptable to meet specific needs.
Our Lounge with library features elegant arches along the walls, integrating space for a functional library setup while enhancing the aesthetic appeal of the environment. Ample natural light floods the area, creating a sense of openness and connectivity.
Our Phone Booths provide quiet, enclosed spaces for our clients to be able to step away and take their calls without disturbing the others.
Our Community Desk serves as a central hub providing assistance to each and every need of the clients from visitor management to meeting room bookings, handling couriers and addressing requests.
We conduct life enriching Events by partnering with businesses, thinkers, creators and community shapers, to organize online and offline experiences that inspire, encourage growth, build valued connections and expand learning horizons.
There are a host of Other Amenities like High-speed internet lease lines, stationery and supplies, UPS power and server racks. There are additional facilities including printing services, storage lockers, mail handling, AV conferencing capabilities, parking services and key card access, ensuring a safe and efficient workplace environment.
- As sustainability becomes increasingly important, how is Dextrus integrating sustainable practices into its operations?
Dextrus is a trailblazer in sustainable business practices making notable strides in environmental stewardship through a range of innovative initiatives.
Electricity conservation:
Dextrus has meticulously designed its spaces to maximize the use of natural daylight, reducing reliance on artificial lighting. Smart meters are deployed to monitor and manage electrical usage efficiently, ensuring that energy consumption is kept to a minimum. Additionally, motion sensor lights automatically turn off in unoccupied areas, further cutting down on unnecessary energy use.
Water conservation:
Dextrus has installed low-flow water fixtures throughout their facilities, significantly reducing water consumption. Dextrus has also found a practical solution for rejected RO water by repurposing it for toilet flushes and landscaping. To improve soil quality and water retention, Dextrus has replaced traditional soil in planters with clay pellets, which also reduce the need for frequent watering.
Waste Management:
Dextrus has focused on minimizing paper wastage by using recyclable paper and eliminating single-use plastics. Employees are educated on effective waste management practices to foster a culture of sustainability. Furthermore, innovative materials and techniques are employed in construction and build requirements to minimize environmental impact.
Commitment to sustainability:
Dextrus has strategic partnerships with organizations like Saathi Pads, which provides biodegradable sanitary pads and Padcare, which recycles and reuses disposed sanitary pads. These collaborations highlight Dextrus’s dedication to reducing environmental footprint. The partnership with Skrap ensures a comprehensive waste segregation system, enhancing overall waste management efficiency.
Inclusivity:
Inclusivity is a core value for Dextrus. The company has made significant efforts to accommodate all individuals by incorporating slopes at entry points, providing gender-neutral bathrooms and ensuring that facilities are wheelchair accessible.
Emerging Trends in Coworking Spaces and the Role of Dextrus
Niche spaces:
The coworking space industry is undergoing rapid transformation as it adapts to the evolving needs of modern professionals. Among the emerging trends, creating niche spaces has become increasingly significant. As businesses and freelancers seek environments tailored to specific industries or professional needs, Dextrus stands out as a leader in innovative space design. By focusing on creating specialized environments, Dextrus caters to diverse sectors, ensuring that each space not only meets functional requirements but also fosters a unique community.
Rising importance of Tech:
Technology integration is another key trend shaping the future of coworking spaces. Modern coworking environments must address a variety of client needs, and Dextrus is at the forefront of this evolution. The company is adopting advanced enterprise solutions, task management tools, and the latest communication software to streamline operations and enhance user experience. These technological advancements are crucial for maintaining productivity and connectivity in today’s fast-paced work culture.
Sustainability is the key:
Sustainability has also become a critical focus within the coworking sector. As businesses and individuals become more eco-conscious, the demand for environmentally responsible workspaces is increasing. Dextrus is leading the way with initiatives aimed at energy conservation, water management, and waste reduction. By implementing green practices and sustainable technologies, Dextrus not only reduces its environmental footprint but also sets a standard for others in the industry.
Flexibility mandate:
Finally, flexibility in space solutions is emerging as a significant market trend. The ability to adapt workspaces to varying needs is crucial for accommodating different team sizes and project requirements. Dextrus excels in providing flexible solutions, offering spaces that can range from small, intimate setups to larger configurations with as many as 20 workstations. This adaptability ensures that clients can scale their workspace needs in response to changing demands.
- As a leader in the co-working industry, what inspired you to enter this space and how has your journey been so far?
Dextrus Journey:
In 2016, the seed for Dextrus was planted, driven by a curiosity about the real estate and design landscape in India. Dextrus was inspired by the evolving needs of modern businesses and the potential for innovation in workspaces. The idea was to create a unique synergy between design and business, leveraging the dynamic nature of coworking spaces to meet the demands of a growing and diverse market. The business of coworking spaces, as we see, is more than just shared offices. It represents a fusion of sophisticated design and strategic business thinking. This approach required a holistic view of real estate, going beyond traditional development to include every facet of design, build and management.
In 2018, Dextrus launched its first coworking center in the bustling Business District of Bandra-Kurla Complex (BKC) in Mumbai. The center quickly established itself with more than 95% occupancy as a hub for professionals and entrepreneurs, embodying the company’s commitment to blending aesthetic appeal with operational excellence. Dextrus continues to expand its footprint, reflecting a successful foundational philosophy which is a testament to its ability to adapt and innovate within the competitive real estate market, making it a notable player in the Indian coworking industry.
Future Plans:
Dextrus is poised for expansion as we embark on the launch of our third center at BKC One. Building on the success of our initial centers, we are keen to broaden our footprint both within Mumbai and across other major cities in India. As mentioned above, the journey began with the first center in Bandra-Kurla Complex (BKC), setting a strong precedent of an impressive 95% occupancy rate. The second center outperformed expectations with over 90% occupancy in its inaugural year. These achievements have bolstered our confidence and reinforced the potential for growth.
As we progress with our expansion strategy the idea is to grow towards a couple of more centers in the coming years, we need to maintain the high standards of our design and functionality. Our focus remains on replicating the successful model across Mumbai and extending its reach to other cities across India. However, recognizing the complexity of the real estate market, our approach towards expansion is with caution and precision. Each new location will be meticulously designed to align with the company’s high standards, ensuring that every space meets the unique needs of its clients while maintaining a productive and collaborative environment. Moreover, we will need to continue investing in robust internal systems to support this growth and maintain operational excellence across all centers.
- What advice would you give to entrepreneurs looking to enter the co-working space or the broader real estate market in India and How important is flexibility and adaptability in running a successful co-working business in today’s dynamic market?
Pointers for entrepreneurs looking to enter coworking space:
Entering the coworking space sector requires a strategic approach, especially for start-ups aiming to make a mark in this competitive field. Given below are some recommendations for entrepreneurs in coworking start-ups to ensure success and business sustainability. By following these recommendations, entrepreneurs can navigate through the complexities and build a resilient and successful start-up.
- Identify Market Needs Accurately: Understanding and addressing the specific needs of your target market is essential. For instance, Dextrus has carved a niche by focusing on unique design elements and exceptional service. Identifying what sets your coworking space apart and how it aligns with market demands can significantly enhance your appeal. Conduct thorough market research to discern the preferences and pain points of potential clients, which will help in tailoring your services to meet their needs effectively.
- Expand Beyond Core Expertise: While having a core area of expertise is valuable, managing a coworking space requires a broad skill set. Entrepreneurs must be prepared to handle various facets of the business, from property management and marketing to customer service and financial planning. This holistic approach ensures that all aspects of the business are covered and can help in navigating challenges that arise in different areas.
- Customize Offerings Based on Market Trends: Staying attuned to market trends and adapting your offerings accordingly is crucial. For example, businesses that previously focused on long-term commitments are now favoring more flexible arrangements due to the rapidly changing business environment. By customizing your coworking solutions to meet these evolving preferences, you can attract a broader range of clients and stay relevant in a dynamic market.
- Exercise Patience and Prudence: Real estate investments, including coworking spaces, often yield slow returns. Entrepreneurs must be patient and prudent, understanding that building a successful business takes time. Focus on gradual growth and maintaining financial discipline to weather the slow return phase and position your business for long-term success.
- Maintain Focus and Humility: Finally, maintaining focus and humility is key. Success in the coworking space sector often comes from a steady, incremental approach rather than seeking immediate big wins. Embrace a growth mindset, stay committed to your vision and be open to learning and adapting as you progress.
- Delivering service excellence: It is important to cultivate a collaborative culture by prioritizing open communication and mutual support among team members. This will be possible by providing an environment where feedback is welcome and diverse perspectives are valued. This internal cohesion will extend to external interactions, enhancing client and vendor relationships through unparalleled service standards. Encouraging networking within the coworking community will also help gain fresh business insights. An empathetic leadership and a supportive atmosphere will develop a robust organizational culture that not only drives internal success but also positively impacts service delivery and reputation.
Importance of flexibility and adaptability in coworking:
In order to stay ahead, modern businesses need flexibility and adaptability in a world that’s always shifting. One of the biggest perks of coworking is the flexible rental terms. Traditional office leases often lock business into long-term commitments, but coworking spaces offer much more freedom. This means businesses can scale up or down as needed without the worry of being stuck in a rigid lease, making it easier to manage costs and adapt to market changes.
But the benefits don’t stop at just having the right space. Coworking environments are great for fostering connections and collaboration. Sharing a workspace with other entrepreneurs and businesses opens up spontaneous opportunities for brainstorming, partnerships and networking. Many coworking spaces even host events and workshops, further encouraging interaction and collaboration.
Flexibility also shines in the variety of membership options available. Whether you’re a freelancer who needs a quiet spot or a growing startup that needs more room, coworking spaces have a range of plans to fit different needs. This adaptability is perfect for businesses that are expanding or shifting directions. In short, flexibility is key to what makes coworking spaces so successful. They help businesses thrive in an ever-changing world and hence coworking spaces will continue to play a big role in shaping how businesses perform.
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