Expansion, fund raising consolidate co-working space; PE deals set to grow

Traction in fund raising from PE deals in the co-working space has been such that from $4 million of deals in 2016, PE deals in the year-to-date in 2018 have been over $40 million

The co-working space has begun seeing consolidation, with players such as GoWork, AltF CoWorking and One Co.Work having already acquired or in the process of acquisition of smaller players. Companies are targeting expansion across geographies, and raising funds given the industry is capital intensive.

The consolidation, along with projected expansion to other tier-1 and tier-2 cities, is also set to boost private equity (PE) deals in the sector.

For instance, GoWork is in the process of raising $200 million for acquisition and expansion activities over the next couple of quarters. From a current 3.1 million sq ft of managing co-working