KARACHI, Dec 26, 2023— Kickstart, the pioneering co-working space firm founded in 2016 by LUMS alumni Saad Riaz, Khawaja Raza, and Hassan Shahid, announced today the successful raising of PKR 200 million from Vital Group. This strategic investment will propel Kickstart’s expansion efforts, enabling the company to enhance its presence in central Karachi.
A trailblazer in collaborative workspaces in Pakistan, Kickstart currently manages 12 locations across the country, serving over 3,000 members. With the freshly raised capital from Vital Group, Kickstart aims to double its area in Karachi to exceed 80,000 square feet, bringing its total coverage to 200,000-plus square feet across 14 locations.
Kickstart’s innovative approach extends beyond conventional co-working services. The company has introduced a new business model where it acts as a property manager for landlords, operating on a revenue-sharing basis. Co-founder Khawaja Raza explains, “With our revenue-sharing model, where Kickstart functions as a specialist operator, the yields can go up to 8-9%, reducing the payback period by 40% compared to traditional commercial real estate.”
In the context of Pakistan’s startup landscape facing financial challenges, Kickstart’s success stands out. Despite a downturn in the sector, Kickstart’s expansion aligns with the global surge in demand for co-working spaces. Across the top seven cities in India, co-working spaces have seen substantial growth, with projections indicating an increase to 1,025,000 seats occupying 75 million square feet by 2025.
According to Data Darbar, a platform tracking investment flows into the country’s tech sector, local startups could only raise a total of $35.1 million in the first nine months of 2023, marking an 89.4% decrease year-on-year. The number of deals in the first three quarters also dropped significantly from 62 deals a year ago to 21.
Despite the challenges, Kickstart’s commitment to innovation, strategic partnerships, and expansion positions the company as a resilient force in Pakistan’s co-working landscape!
