Noida-based real estate consultancy firm Investors Clinic Infratech Pvt. Ltd and coworking space provider Kocreate have agreed to invest Rs 10 crore ($1.31 million at current exchange rates) in an equal joint venture for creating new shared workplaces.
Both the companies have put in Rs 5 crore each for the initial investment, Investors Clinic said in a statement.
As per the deal, Investors Clinic will exclusively tie-up with builders to create office space and Kocreate, which has expertise in managing coworking spaces, will bring the operational knowledge in creating and running the centres.
Honeyy Katiyal, founder at Investors Clinic, said the firm has been trying to expand its business operations and coworking is the next big leap. The company has been delivering its services in housing real estate to its partners, consumers and builders.
“The latest move will be an extension of present services where we will offer exclusive profitable ventures to our partners,” Katiyal said.
The JV, which will be known as Kocreat, plans to add 5,000 new seats within a year in Delhi-NCR.
“The JV will bring in a win-win situation for both the parties when we will look at business expansion and Investors Clinic will venture into a new aspect of real estate,” Nitin Gupta, co-founder at Kocreate, said.
He said all coworking spaces by Kocreat will be state of art, AI-enabled and COVID-19 compliant. The firm already has two centres located in Noida under the brand name Kocreate.
A bunch of coworking companies have emerged in real estate space in the last few years. The flexibility, convenience and cost-effectiveness offered by coworking firms have made them quite popular among startups, freelancers and even enterprises.
Last year in October, coworking space provider Smartworks Coworking Space Pvt. Ltd bagged Rs 177 crore in funding from Singapore-based Keppel Land Ltd, the property arm of business group Keppel Corporation.
In August 2019, BlackRock Inc, the world's biggest asset management firm, had led Rs 375 crore debt funding round in Gurugram-based coworking firm GoWork.