Rapid growth set to drive consolidation among India’s flexible office providers - The Economic Times

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Key Trends in India's Flexible Workspace Market

The Indian flexible workspace market is experiencing rapid growth, driving a wave of consolidation among industry players. This surge in demand is prompting strategic mergers and acquisitions to enhance market presence and expand service offerings.

Market Consolidation

India currently has over 250 flexible office providers, with major players controlling almost 60% of the market share. Experts predict the sector's consolidation will result in 10-15 major operators dominating the market in the coming years, mirroring trends in mature markets like the US and Southeast Asia.

Driving Forces

  • Increased demand for flexible workspaces
  • A "flight to quality" trend, favoring integrated live-work-play environments
  • Opportunities for property owners to add coworking spaces to their offerings

Recent Acquisitions

Recent deals, including Brookfield's acquisition of CoWrks, Oyo's takeover of Innov8, and AltF CoWorking's purchase of Daftar India, illustrate the ongoing consolidation. These mergers allow companies to expand through inorganic growth and strengthen their business models.

Future Outlook

The consolidation is expected to reshape the market, leading to industry majors setting standards and driving market dynamics. Companies are striving to consolidate their strengths and operations to meet evolving customer expectations and maintain competitiveness.

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