What are the major operational costs of an early-stage startup with small teams? Well, if you have more employees, then renting out an office space is a better idea, but what if you are a small team? If you rent an office space for small people, then operational costs would drain your finances. From the electricity bill, the WIFI bill, maintenance, cleaning, and whatnot, you need to follow what all other offices follow.
But when it comes to your team size and revenue, there is no logic to renting out or buying an office space. So, in that scenario, workspaces are something feasible for your startup. And not just for startups, but also for employees doing work from home and to conduct meetings.
Now, this culture of co-working is seeing a massive rise. But why?
As mentioned earlier, co-working space eliminates all those operational expenses; you will pay for a seat, and in return you will get a fully furnished office, high-speed WIFI, meeting and conference rooms, cleaning and maintenance, printing and reception services, and yes, free coffee.
Now this makes co-working spaces a perfect fit for early-stage startups, freelancers or solo founders, and remote teams needing an occasional physical base.
But why is this rising so fast these days?
The co-working culture isn’t just growing because it’s cheaper. It’s rising because it solves multiple pain points that modern work culture faces.
First, this all comes from a common issue called flexibility. Traditional offices lock you into long-term leases, often 3–5 years. Co-working, on the other hand, lets you scale up or down anytime. If your team grows from 3 to 10 people, you can instantly book more seats. If you want to move cities, just switch centers.
Working in a co-working space means you’re surrounded by other startups, freelancers, designers, and entrepreneurs. This ecosystem creates opportunities for collaboration, learning, and partnerships. It’s not uncommon to find your next client, developer, or investor sitting two tables away.
For freelancers and remote teams, working from home can get lonely and unproductive. Co-working provides a professional setup with meeting rooms, event spaces, and an energetic environment that motivates you to stay focused.
And one of the most successful factors for the co-working concept is its location. Most co-working spaces are located in premium business areas, places where startups could never afford a full office otherwise. You get a prestigious address and access to the city’s commercial ecosystem without paying the full price.
And that’s exactly why the industry is booming like anything. According to Colliers India, co-working center operators have rented 65 lakh square feet of office space during the January–June 2025 period across India’s top seven cities, marking a sharp 48% year-on-year growth. In the same period last year, operators had leased around 44 lakh square feet.
This surge is driven largely by rising demand from corporates and enterprises looking for managed and flexible workspace solutions. The trend is consistent across major office markets like Delhi-NCR, Mumbai, Bengaluru, Hyderabad, Pune, Chennai, and Kolkata, all of which are witnessing record absorption levels.
According to ICRA, India’s flexible office space market is projected to expand to 125 million sq. ft. by March 2027, which is up from 80 million sq. ft. in December 2024. And the industry is expected to grow at a CAGR of 21-22% between FY25 and FY27.
When we look at the players driving this booming co-working ecosystem, the landscape is now dominated by a mix of strong Indian brands and established global operators.
In India, Awfis Space Solutions, Smartworks, WeWork India, and IndiQube are among the largest players, collectively holding a significant share of the country’s organized flexible workspace market.
Awfis, with over 150 centers across 17 cities, reported a revenue of around ₹633 crore in FY24, while Smartworks, which operates 12.7 million sq. ft. across 15 cities, generated revenues exceeding ₹1,000 crore, mainly catering to large enterprises and global capability centers (GCCs).
WeWork India, run by the Embassy Group, continues to dominate the premium segment with 59 centers and ₹1,400 crore in revenue during FY24, while IndiQube, operating 115 centers across 15 cities, crossed ₹550 crore in revenue.
There are other players such as Cowrks, Table Space, 91Springboard, and BHIVE that are expanding across Tier 1 and emerging Tier 2 cities.
Together these players are driving how modern professionals and companies think about work, flexibility, and collaboration.
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