The Office Pass (TOP)
About the Company
The Office Pass (TOP) focuses on neighborhood coworking, catering to small and mid-sized businesses (SMBs) in India. This innovative model aims to minimize long commutes in congested cities, offering high-quality workspaces within a five-kilometer radius of users' homes or businesses. As of now, TOP operates ten coworking spaces in New Delhi, serving over 140 SMBs. By providing accessible, affordable, and ready-to-use office facilities, TOP has distinguished itself in the coworking market, boasting a healthy growth rate of 180% year-over-year.
TOP prioritizes convenience, likening its operations to a "7-Eleven" model of coworking rather than the expansive "Walmart" approach seen in developed countries. Its spaces are designed to foster productivity while reducing unnecessary commuting time. The company's revenue has reached $1.8 million annually, with an ambitious goal of scaling to $7.3 million within two years.
Idea Behind Company
Aditya Verma, an experienced entrepreneur, developed the concept for TOP after identifying inefficiencies in long commutes in Indian cities. Having previously co-founded the successful real estate platform Makaan.com, Verma leveraged his expertise to address this issue. He concluded that coworking spaces adapted to local needs could dramatically enhance productivity and save time for professionals.
Initially inspired by the coworking model of companies like WeWork, Verma re-imagined the concept for India’s unique challenges. His vision of "neighborhood coworking" aims to balance affordability and proximity, ensuring SMBs and freelancers have access to professional-grade facilities without extensive travel. This adaptation underscores TOP’s commitment to reshaping the coworking landscape in India.
Creating the Company
The Office Pass was born out of extensive research and iteration. Verma initially explored managed apartment businesses but shifted focus after studying the coworking sector. He spent four to five months refining the idea, ensuring it was scalable and suitable for Indian markets. The first office, launched in 2017 in Gurgaon, served as a testing ground to validate key business metrics like customer retention, price points, and break-even times.
Financed through personal investments and contributions from co-founders, the pilot space enabled Verma to test and optimize strategies. After 11 months, the first location achieved break-even, paving the way for expansion. Despite scaling opportunities, Verma prioritized sustainable unit economics, ensuring every location generates real profits.
Launching the Business
TOP's launch involved meticulous planning, from creating a brand identity to designing the workspace experience. The founding team used creative agencies to develop a corporate identity, including logo options and the look and feel of the brand. The first coworking office was established as a minimum viable product, allowing the team to test hypotheses about operational feasibility and market demand.
The launch phase also included answering critical questions about customer needs and operational challenges. These insights informed adjustments to business strategies, such as ideal pricing and cost management, leading to faster break-even times in subsequent offices. Today, TOP achieves profitability within four to five months of opening a new location.
Earnings
TOP generates $225,000 in monthly revenue, with annual recurring revenue projected at $1.8 million. Despite the challenges posed by the COVID-19 pandemic, which initially led to a 62% revenue drop, the company has rebounded by adopting creative marketing strategies and focusing on team-oriented customers. Occupancy rates have recovered to 68%, surpassing the breakeven point of 60%.
By reducing customer acquisition costs and optimizing lifetime value, TOP has achieved a 2600% return on acquisition expenses. With plans to expand to 55-60 offices in two years, TOP aims to further enhance profitability while catering to over 1,000 companies. The business’s commitment to sustainable growth and adaptability positions it as a leader in India’s coworking industry.
