Co-working start-up VORQ Space will invest $5 million to expand into tier I and tier II markets in the next three years.
“We are targeting to develop around 2,500 and 1,400 seats in tier I and tier II markets, respectively. This will involve a total space of around two lakh sq ft in both the categories,” VORQ Co-founder Akshit Mehta said in a release today.
The company has earmarked $3.5 million for expansion into tier 1 cities and the rest for tier 2 cities. The focus locations in the first phase are Goa, Surat, Nashik, where VORQ Space will be opening two offices in each city. The company currently has two boutique spaces in Mumbai.
“Tier II markets offer low priced leases, along with a large number of land resources and ease of commuting, making the co-working industry more efficient and sustainable. These markets would soon be the hot pockets of the co-working industry fed by such provisions and more economical options,” Mehta said.
There is a huge potential in tier II markets as in recent years, the number of home-grown start-ups and entrepreneurs from these cities has exponentially increased. “Most of the people, who would travel to the tier 1 cities in search of reliable infrastructure, are now rethinking and looking for such resources within their cities,” he said.
“The exponential growth of co-working Spaces globally means that the world is adapting to changes in the way of work. We are venturing into cities which are in need of such work set-ups, considering the increasing number of entrepreneurs from such cities,” Mehta added.
Availability of internet has helped boost the home-grown start-ups to work from within their locations, instead of being less productive while moving around.