In 2016, sensing a crucial need in Pakistan’s burgeoning entrepreneurial ecosystem, Saad Idrees, the founder and CEO of Daftarkhawan, decided to work on the solution. Universities were bursting with incubators launching new ventures, but a major obstacle loomed: the high upfront cost of starting a business. Recognising this logistical hurdle, Idrees came up with the co-working space idea.

Inspired by a gym membership model, Daftarkhawan prioritises operational efficiency over capital expenditure, making it easier for entrepreneurs to get started, and goes beyond providing just a workspace. It fosters a supportive community that celebrates and empowers entrepreneurs, creating a multifaceted value proposition.

The News on Sunday had an exclusive chat with Idrees.

The News on Sunday: Were there any specific role models or successful co-working spaces that inspired you?

Saad Idrees: Not initially, because we kind of unknowingly were reinventing the wheel. We were trying to solve the problem of making it easier for entrepreneurs to set up and expand their businesses, without doing any specific research and just purely focusing on the problem. As we progressed, people in our network shared how these companies in the US and Europe have a similar model, that was a major validation and inspiration. We were able to work on the specific nuances for our local audience and provide for those needs.

TNS: How has your business grown since you started? Can you share some key milestones and achievements?

SI: We began eight years ago with a modest workspace for just 20 people. Pioneering the co-working concept in Pakistan, we carefully tested its fit within the local environment. Thankfully, it resonated well, attracting a group of early adopters who became the foundation of our strong community. We’ve grown steadily ever since, serving a diverse clientele that now includes startups, new media companies and multinational corporations; even public sector organisations. Notably, we were the first contributor to the special tech park in Rawalpindi.

TNS: What target audience(s) are you focusing on?

SI: Daftarkhawan’s target audience has evolved significantly over time. Initially, our network attracted a tech-focused crowd. However, we quickly expanded to embrace creative and digital artists. Today, we serve a diverse range of companies across various industries, including shipping, technology, incubators, accelerators and the public sector.

One unifying factor is that our core audience is founders. We cater to individuals building something new, regardless of their industry. Founders seek high-value partnerships. That’s precisely what Daftarkhawan offers — a supportive community and a platform for growth.

TNS: What types of facilities and services do you offer to your clients? What amenities are most valuable to your members?

SI: At Daftarkhawan, we go beyond providing office space; we offer a comprehensive solution for your business infrastructure needs. From fully furnished and customisable offices to handling maintenance, we ensure your workspace perfectly reflects your company culture.

However, it’s not just about the space. Our members value a variety of amenities, including convenient food service, energising community and networking events, and an inspiring design that fosters creativity and productivity. Ultimately, our goal is to empower each company and professional to thrive in our supportive environment.

TNS: How do you assess the demand for co-working spaces in Lahore and Pakistan overall? Have you noticed any trends or changes in this demand?

SI: To me, it feels like we are still scratching the surface as far as the demand is concerned. Co-working spaces are still not a completely mature industry, so what we are effectively looking at is that co-working is getting a lot of converts as more and more people are now opting to work in such an environment. We are excited about the challenge.

TNS: Can you describe the current scope and scale of your Lahore co-working space operation, including the number of locations you have and how your occupancy rate has changed over time?

SI: Daftarkhawan has a flourishing co-working space presence in Lahore. Currently, we operate six locations across the city, with a total of 10 locations including Islamabad and Rawalpindi. Our reach extends to over 4,000 individuals from diverse professional backgrounds, representing around 400 organisations. The majority is local companies, but there’s also a good international presence — chiefly from Australia, North America and the Middle East.

Our occupancy rates are strong. Nearly all locations operational for more than 3-6 months boast close to 100 percent occupancy, demonstrating the high demand for co-working spaces.

TNS: What are the primary reasons co-working spaces are replacing traditional offices?

SI: There are several reasons. Startups and young companies are drawn to the vibrant community and networking opportunities, a stark contrast to the isolation of setting up their own spaces. Then there is the cost-effective aspect, eliminating the burden of upfront investment and long-term leases. High-growth companies value the flexibility to scale their workspace as needed. This allows them to optimise resource allocation and avoid being locked into fixed infrastructure, freeing up capital for growth. Overall, this concept offers to empower businesses of all sizes to thrive by addressing their specific needs.

TNS: What are some of the biggest challenges you’ve faced in running a co-working space?

SI: Running a business involves daily challenges; operating in Pakistan brings on some additional ones. The entrepreneurial mindset is to know that these are part of the journey. Despite the challenges, we have grown; through them. We got stronger, possibly more refined, with clarity about what our mission was and what we needed to focus on constantly.

TNS: What are your key learnings from this experience?

SI: There are two key learnings. First, the need for clarity. Having a clear understanding of your company’s mission is vital. This means knowing exactly what you do; why you do it; and who you do it for. A strong mission statement guides your growth strategy, helps you navigate challenges and communicates authenticity to stakeholders, something everyone values.

Second, business fundamentals. Remember, you’re running a business. Never lose sight of the bottom line. The financial sustainability of your company is the foundation for everything else — its growth, longevity and overall success.

TNS: What are your long-term goals for Daftarkhawan?

SI: Daftarkhawan’s long-term goal is to solidify its position as a launch pad for Pakistani entrepreneurs. We hope to achieve this by continuously nurturing the supportive community that fuels our success, while simultaneously innovating and expanding our offering to further empower the exceptional members we serve.

The interviewer is a communications, public relations and sustainability professional. Her X handle is @FatimaArif