Downsizing & layoffs in IT industry have impacted the demand for flex spaces in a positive way: Amal Mishra, Urban Vault

In an exclusive interview with Sanjeev Sinha, Mr Amal Mishra, co-founder, Urban Vault, talks about the latest trends in managed office spaces and shares his business outlook. Excerpts:

How has the journey been for Urban Vault so far? What is the current capacity of managed office spaces you are overseeing?

Urban Vault (UV) is a trailblazing provider of managed office spaces, transforming the commercial real estate landscape in India through its innovative Intelligent Workspace as a service solution. With an impressive portfolio encompassing over 1 million sq ft of managed space in Bangalore, we are dedicated to crafting the workspaces of tomorrow that cater to the unique and evolving needs of your business and workforce.

What sets us apart is our remarkable journey of growth, starting from a modest 40-seater establishment and expanding to accommodate more than 10,000 seats in Bangalore. Our success story exemplifies the immense potential for businesses to flourish through self-funding while preserving the freedom to remain true to their vision and deliver unparalleled services to clients. We believe in empowering businesses to thrive in their chosen paths while providing them with exceptional workspace solutions.

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How has the past year been in terms of growth, and what are your targets for the fiscal year 2023-24?

In the January-March quarter alone, we witnessed a substantial growth, adding nearly 2,000 seats, which surpasses the total number of seats added throughout the entire year of 2022. Looking ahead, our projection for the fiscal year 2023-24 is to further expand our offerings by adding over 7,000 seats.

This impressive growth trajectory is a testament to our unwavering focus on providing top-notch services and our commitment to excellence. As we enter the next quarter, we are thrilled to announce that we are on the cusp of achieving a remarkable Annual Recurring Revenue (ARR) of Rs 60 Cr. This milestone reflects the trust and satisfaction of our valued clients and positions Urban Vault as a leader in the industry.

Are there any plans in place to expand to other cities in the near future?

Urban Vault has set ambitious growth plans for the near future, aiming to expand its presence in Bangalore by entering new areas of the city. Moreover, the company plans to extend its operations to additional cities like Pune and Hyderabad, offering its innovative and sustainable office spaces to a broader audience. With a strong commitment to excellence, Urban Vault strives to become the largest managed office provider in India. In pursuit of this vision, the company is planning to make history as the first managed office brand in India to go public with an initial public offering (IPO). By pursuing these objectives, Urban Vault is poised to revolutionize the managed office space industry and usher in a new era of flexible and sustainable office spaces.

What distinguishes Urban Vault from its competitors in the industry?

Urban Vault stands out in the industry due to its strong commitment to customization. The company goes the extra mile to meet the specific requirements of each client, offering tailored services and amenities. These include customizable interiors, branding options, IT support, and more, ensuring that every client’s unique needs are addressed.

What sets UrbanVault apart is its innovative online platform, which simplifies the process of finding and leasing office spaces. With just a few clicks, businesses can browse through a wide range of spaces, view real-time availability, and easily book their desired spaces online.

To provide flexibility, Urban Vault offers a range of pricing options that cater to different needs. Clients can choose from hourly, daily, weekly, or monthly packages, allowing them to select the most suitable option based on their requirements.

In addition, Urban Vault is dedicated to sustainability and incorporates environmentally-friendly features into its office spaces. Energy-efficient lighting, water-saving fixtures, and other eco-friendly amenities are integrated to reduce the environmental impact and provide a sustainable working environment.

According to various reports, there has been a notable surge in office space rentals in Bangalore over the past few quarters. In your opinion, what are the factors contributing to this increase?

In my opinion, several factors contribute to the notable surge in office space rentals in Bangalore over the past few quarters. Firstly, Bangalore has established itself as a prominent hub for the IT and technology sectors, attracting numerous companies and startups. The city’s thriving ecosystem, skilled workforce, and availability of infrastructure make it an ideal choice for businesses looking to expand or set up operations. Additionally, the presence of renowned educational institutions and research centers further enhances Bangalore’s appeal as a destination for businesses. The city’s excellent connectivity, modern amenities, and supportive government policies also play a significant role in attracting companies and driving the demand for office space rentals.

The downsizing and layoffs in the IT industry are leading to significant changes in real estate requirements for these companies. How is this trend affecting the demand for flexible workspace?

The downsizing and layoffs in the IT industry have indeed impacted the demand for flexible workspace in a positive way. I mean we are witnessing more demand from the IT sector in the present scenario. As companies navigate through uncertain times and reassess their real estate needs, they are increasingly seeking more flexibility in their office space requirements. Flexible workspaces offer a solution that aligns with these changing demands. Companies that are downsizing or undergoing layoffs often opt for flexible workspace solutions as they provide the flexibility to scale up or downsize their office space as needed. This allows them to reduce costs, maintain agility, and adapt to evolving business conditions.

As a result, the demand for flexible workspaces has increased, as it offers a cost-effective and adaptable solution for companies in the IT industry during periods of downsizing and layoffs.