Pakistani co-working space, Kickstart, has successfully raised Rs. 200 million from Vital Group, earmarked for the expansive growth of the company’s presence across central Karachi.
With this strategic investment, Kickstart plans to double its area in Karachi to over 80,000 sq ft. Founded in 2016 by LUMS alumni Saad Riaz, Khawaja Raza, and Hassan Shahid, Kickstart has been a pioneer in collaborative workspaces in Pakistan. Currently managing 12 locations nationwide and serving more than 3,000 members, the company is set to increase its total coverage to over 200,000 sq ft across 14 locations after the expansion.
In addition to the funding, Kickstart has introduced a new business model where it will serve as the property manager for landlords, operating on a revenue-sharing basis with them. Khawaja Raza explained, “Kickstart has been building and operating premium commercial real estate for 8 years and has built a reputable brand through which property owners can improve their rental yields.”
He further added, “Traditionally, the rental yield on commercial real estate has been around 5% in Pakistan, which means the owner takes 20 years to recover their investment. With our revenue-sharing model, where Kickstart comes in as a specialist operator, the yields can go up to 8-9% with some additional investments in furnished assets and reduce the payback period by 40%.”
Kickstart’s flexible workspace arrangements enable new-age companies to manage large teams effectively by scaling up quickly without the burden of heavy capital expenditures based on their future needs. In downtown Karachi, where quality office space is a scarce resource, Kickstart equips organizations to provide their employees with state-of-the-art facilities in a flexible manner without operational troubles.
The expanded co-working spaces are designed to serve diverse communities, offering private offices for growing ventures, open seating for freelancers, meeting rooms, recording studios, skill-building workshops, and cultural event venues.
Kickstart’s expansion aligns with the global surge in co-working spaces. In India’s top seven cities, coworking spaces have seen substantial growth, reaching 680,000 seats and 43.4 million sq. ft by June 2022. The coworking market size in North America reached ~$4.6 billion in 2023 and is projected to reach $7.73 billion by 2028, growing at 11% annually.
This investment not only supports Kickstart’s expansion plans but also contributes to the evolving landscape of flexible workspaces in Pakistan, catering to the changing needs of businesses and professionals in the region.
