Hyderabad: Hyderabad-based co-working spaces company iSprout, founded by Sundari Patibandla, a chartered accountant-turned-entrepreneur, is planning for expansion across India with a pipeline of co-working facilities. The company which has invested Rs 28 crore so far in its facilities will invest another Rs 60 crore by December this year to meet its expansion needs.
The company which operates two facilities in Hyderabad in Madhapur and one recently established centre in Vijayawada is going to set up two new centres in Chennai, followed by centres in Bengaluru and Pune by end of 2019. The company is also planning to set up its third facility in Hyderabad in the next four months.
Sundari Patibandla, founder and CEO, “After studying the market needs in India and global co-working spaces, we established iSprout in 2016 and came out with our first facility in Hyderabad with 200-seat capacity spread over 12,000 sq ft area in Hyderabad to cater to startups. Soon, we realised there is a large demand in the city for co-working spaces, and created our second facility with 1,800 seat capacity spread over 90,000 sq ft to cater to MSMEs. We have set up a 200-seat facility in Vijayawada recently.”
She added, “We are setting up one centre in Chennai with 200-seat capacity that will open on March 25 followed by a second facility there in July. We will open our third Hyderabad facility spread over 70,000 sq ft in next four months in a gold rated building and one centre will come up in Bengaluru by December this year. We are looking at a facility in Pune in about 20,000 sq ft area. By end of 2019, we are anticipating to create a capacity of 7,500 seats in about 3,50,000 sq ft area pan-India.”
The company is currently meeting its financial requirements through debt and by July, it will pursue opportunities in the private equity route.
iSprout sees demand primarily from the IT and allied sectors. Unlike most of the other co-working spaces which primarily cater to startups, the company’s centres largely cater to MSMEs with an average team size ranging from 5 to 400. However, iSprout has dedicated 25 per cent space to startups, while 75 per cent is allocated for MSMEs. Companies such as Uber, Dell, Curefit and Pactera are using its facilities.
Sreenivas Tirdhala, managing director, iSprout said, “Many companies have audited our facilities for quality and data security and chose us.”
The company besides the co-working space is also helping MSMEs with legal and financial advisory they need to scale up.