In a strategic move poised for significant impact, Kickstart, a prominent co-working space in Pakistan, has successfully secured Rs. 200 million in funding from Vital Group. This substantial investment is earmarked for an extensive expansion of Kickstart’s footprint in central Karachi, marking a transformative phase for the collaborative workspace provider.
Founded in 2016 by LUMS alumni Saad Riaz, Khawaja Raza, and Hassan Shahid, Kickstart has been at the forefront of redefining workspaces in Pakistan. With a current presence spanning 12 locations and serving a thriving community of over 3,000 members, Kickstart is set to double its area in Karachi to exceed 80,000 sq ft. This expansion will bring the total coverage to an impressive 200,000+ sq ft across 14 locations.
Notably, Kickstart introduces a new business model, positioning itself as the property manager for landlords and operating on a revenue-sharing basis. Khwaja Raza, co-founder of Kickstart, emphasizes the potential impact on commercial real estate yields in Pakistan. Traditionally, the rental yield has hovered around 5%, requiring a lengthy 20-year payback period for property owners. However, with Kickstart’s specialist operator approach and revenue-sharing model, yields could reach 8-9%, reducing the payback period by a substantial 40%.
Kickstart’s flexible workspace solutions address the evolving needs of modern businesses, allowing them to scale up swiftly without the burden of heavy capital expenditures. Particularly in downtown Karachi, where quality office space is scarce, Kickstart provides organizations with state-of-the-art facilities in a flexible manner, eliminating operational challenges.
The expanded co-working spaces are meticulously designed to cater to diverse communities, offering private offices for growing ventures, open seating for freelancers, meeting rooms, recording studios, skill-building workshops, and cultural event venues. This versatility positions Kickstart as a comprehensive solution for a wide range of professionals and organizations.
This expansion aligns with the global trend of coworking space growth. In India’s top seven cities, coworking spaces have seen a substantial rise, reaching 680,000 seats and 43.4 million sq. ft by June 2022. The projections for 2025 indicate a further rise to 1,025,000 seats occupying 75 million sq. ft. Similarly, in North America, the coworking market size reached ~$4.6B in 2023 and is projected to reach $7.73B by 2028, growing at 11% annually.
Kickstart’s strategic move not only transforms the workspace landscape in Karachi but also aligns with the global trajectory of coworking space expansion, solidifying its position as a key player in the evolving work environment.
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