Gurgaon based TOP Technologies Private Limited that runs a coworking platform The Office Pass, has closed fresh investment round from a group of individual investors led by Dhruv Agarwala, CEO of PropTiger, Makaan & Housing & an institution.
The company will use the funds for hiring technology & product talent and drive expansion of coworking centers over the next 18-24 months. This investment comes within months of their seed investment round that was closed earlier this year.
The company opened their 1stcoworking center in Gurgaon in March 2017, which is fully occupied. “Our 1st center has helped validate many hypotheses that we had, before starting the business. We now feel confident to expand our network in a capital light model, using technology with the objective to expand profitably. Most office-goers waste precious time, effort and money in commuting to work. If they are able to work from a high quality, yet affordable, office near-by, it will solve a big productivity problem for Indian companies.” says Aditya Verma, Founder & CEO, The Office Pass.
Commenting on the investment Dhruv Agarwala added, “The Office Pass has shown good traction within a few months of its launch and that opens up exciting possibilities for rapid expansion. The company has a strong founding team led by Aditya, and has a good understanding of the role technology can play in scaling up the business in a capital efficient way”.
The unit economics of the coworking business are favorable, with gross margin of over 50%, making a strong case for sustainable growth with limited external capital. Use of technology can further improve this margin. The company recently launched an Online Booking & Payment Platform that allows existing & new coworkers to book office space, meeting & conference room through a 100% online experience, which reduces manpower dependence.
Finding an office is a major challenge for Micro, Small & Medium Enterprise (MSME) and freelancers due to their inability to get into a long lease and block money in security deposits. Many of them are forced to work from home and cafes, reducing their productivity. This segment remains below the radar for developers, agents & property owners who find it difficult to service this segment in a cost effective manner. The Office Pass aims to solve this problem by offering flexible terms & use of technology.