INDRAJIT AICH – Godrej Waterside and IT Lagoon, spread across 1.5L+ square feet and offering state-of-the-art facilities, to unlock the huge growth potential in Eastern India Simpliwork expects to add another 4L sq. ft. to Kolkata in the next 3 years Simpliwork Offices, one of India’s largest outsourced office partners, announced its foray into the ‘City of Joy’ with the aim to unlock the huge growth potential in Eastern India.
The Bengaluru-based company, partnered by real estate developer Salarpuria Sattva, has made an initial investment of INR 40 crores in 2 centres – Godrej Waterside and IT Lagoon, spread across 1.5L+ square feet, and offering state-of-the-art facilities, for enterprise customers and MNCs seeking to establish their presence in Kolkata. Simpliwork aims to grow by 2.5 times in Kolkata, by the end of March 2024, as they consider it to be one of the faster-growing markets in India.
According to industry reports, West Bengal, Bihar, Odisha, Jharkhand and Assam are expected to contribute at least 25 per cent of the country’s GDP by 2035, with West Bengal contributing nearly 15 per cent. Over the last couple of years, Kolkata has emerged as a gateway to the East, and global businesses are increasingly expanding into the eastern metropolis.
As employees return to office and businesses go on a hiring spree, there has been a perceptible growth spurt in the region, with large organizations like Deloitte, EY, Mindtree, Larsen and Toubro Infotech, Genpact , and Cognizant, to name a few, expanding their footprint in Kolkata.
Kunal Walia – CEO & Founder, Simpliwork Offices, noted, “Today, several large organizations are exploring office spaces in Kolkata. After experimenting with satellite offices, in particular, flexible office set-ups, during the pandemic, businesses are now looking at implementing them in the long term. Kolkata has been registering an upward trend in hiring and marking double-digit growth. Given the city’s strategic location, diverse talent pool, and growing infrastructure, it acts as the engine of economic growth not just for the state, but for the entire eastern region.”
“At Simpliwork Offices, we believe that Kolkata is poised for accelerated growth. We were among the first players in this space to recognise this opportunity and address the market gap by launching world-class infrastructure with advanced technology to cater to this growing demand. This is an important milestone in our growth agenda for the region. We aim to add another 4L sq. ft. to the city in the next 3 years.”
In the hybrid work environment, employers seek two things – Grade A spaces with advanced technology and large flex spaces – to up their productivity and scale without taking on significant risks. Simpliwork Offices’ strategy is to scale up the business by way of ready-to-occupy spaces as well as build-to-suit spaces.
Founded in 2018, Simpliwork Offices caters to large corporates with 80 per cent of its leasing following a per-desk model and the remaining 20 per cent a per-sq.ft. model, a key factor considering de-densification of offices. At the peak of Covid, Simpliwork delivered India’s largest and second-largest offices for the world’s largest technology company.
The Indian outsourced office market has grown by more than 100% as compared to the pre-pandemic period. While three years ago, co-working and flexible workspace management companies accounted for around 7% of the overall leasing in India, they currently make up nearly 17 – 19% of all corporate leasing in the country.
At present, Simpliwork Offices has 85+ centres spread across 4.2 million sq. ft. in India, with NCR being their biggest markets and Kolkata, the most recent one. The company also has a strong presence in Bengaluru, Hyderabad, Chennai, Pune, Mumbai and Delhi. In 2022, Simpliwork grew its toplines by about 70 – 72% and will close FY 2022-23 with around 49,000-50,000 desks. Their business plan for FY 2023-24 is to add about 2 – 2.2 million square feet of space, which will involve a capital expenditure of about 350 crores. Simpliwork is targeting around a 50% increase in its portfolio over the coming year. They are also exploring fundraising options, with the aim to go public in the next 3-4 years.