During November last year, we had reported that Snapdeal is moving its team to a Coworking Space in Mumbai. It was being speculated that this move is directed towards cost cutting. However according to a recent report by ET, Snapdeal is now vacating the 90 seats that it had occupied in the Coworking Hub in Andheri.
Sources close to the development have said that the company doesn’t want to operate out of the Coworking Space anymore and is thus vacating. It is known that the sales team of Snapdeal was working out of Awfis Coworking in Andheri, Mumbai. Several elements in the startup industry are speculating that this might be another cost cutting move by Snapdeal amidst the dark clouds surrounding the company’s future.
Will This Movement hit the Coworking Space too?
As we know, coworking spaces were initially created so that small teams could work together in a managed infrastructure. When the demand for coworking grew in the country, established startups started moving to Coworking spaces. In addition to that, Corporates have also started entering the coworking domain. In spite of the movements bringing growth and positive change in the coworking industry, can this also make the Coworking model unsustainable?
As we had discussed before, that Coworking Business model can be profitable if it is a win-win for every party involved. However if a coworking space with 200-300 seats loses the business of 90 seats all together, will the space take a big financial hit?Will such movements make the Coworking domain unsustainable like some other failed startup models that emerged in India?
Snapdeal also Vacating Gurgaon Leased Office
It is known that Snapdeal is also vacating its Gurgaon leased office. The company had moved to a 450,000 sqft office space in Gurgaon in mid of the year 2015. It was speculated to be a $22.4 Million worth of a facility that could accommodate 4,500 employees. However now as a consequence of major restructuring going on and several financial issues that the company has been facing, Snapdeal is vacating the massive facility in Gurgaon’s ASF Tower.
Now the question that arises is – Amidst the funding crunch lurking on Indian startups, will Coworking Spaces also take the hit?