Karachi, Pakistan – Kickstart, a leading co-working space in Pakistan, has successfully secured an impressive Rs. 200 million investment from the Vital Group. This substantial funding aims to support Kickstart’s ambitious expansion plans in central Karachi, doubling its footprint in the city.

Doubling the Workspace

With this new funding, Kickstart plans to increase its space in Karachi to over 80,000 sq ft. Founded in 2016 by LUMS alumni Saad Riaz, Khawaja Raza, and Hassan Shahid, Kickstart has been at the forefront of collaborative workspaces in Pakistan. Currently, the company manages 12 locations across the country and serves over 3,000 members. Post-expansion, Kickstart’s total coverage will exceed 200,000 sq ft across 14 locations.

Innovative Business Model

Kickstart is also introducing a new business model where it will act as a property manager for landlords, operating on a revenue-sharing basis. This innovative approach aims to help property owners improve their rental yields. Traditionally, commercial real estate rental yields in Pakistan hover around 5%, with a 20-year payback period for owners. However, with Kickstart’s revenue-sharing model, yields could increase to 8-9%, reducing the payback period by 40% with additional investments in furnished assets, according to Khwaja Raza.

Benefits for Modern Companies

Kickstart’s flexible workspace arrangements allow modern companies to efficiently manage large teams, scaling up quickly without significant capital expenditures. This is particularly advantageous in downtown Karachi, where quality office space is limited. The expanded co-working spaces will 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.

Aligning with Global Trends

Kickstart’s expansion aligns with the global trend of growth in co-working spaces. In India, co-working spaces have seen substantial growth, reaching 680,000 seats and 43.4 million sq ft by June 2022, and are projected to rise to 1,025,000 seats occupying 75 million sq ft by 2025. Similarly, in North America, the co-working market size reached approximately $4.6 billion in 2023, with projections to grow to $7.73 billion by 2028, expanding at an annual rate of 11%.

Conclusion

The Rs. 200 million investment from the Vital Group marks a significant milestone for Kickstart. This expansion will not only bolster Karachi’s business infrastructure but also provide modern, flexible workspace solutions to meet the evolving needs of companies and freelancers. At Makani Marketing, we are excited to see the positive impact of such innovative ventures on Pakistan’s real estate market.

For more information on co-working spaces and investment opportunities in Pakistan, contact Makani Marketing today!