This Startup is Offering Free Office Space to Young Entrepreneurs—Could ‘Year Zero’ Be a Game-Changer?

A startup is offering a bold new initiative called "Year Zero", aimed at empowering young entrepreneurs by providing free office space. The concept, initiated by Sarthak Chhabra and Yogesh Arora, founders of AltF Coworking, seeks to remove the financial burden of workspace costs for bootstrapped startups. With AltF's valuation soaring to Rs. 45 crore, they are now leveraging their success to create a revolutionary platform for entrepreneurs under 25, helping them focus on innovation and business growth. Year Zero is more than just space—it's a launchpad for the next generation of innovators. Yogesh Arora, co-founder of AltF Coworking, highlights the importance of removing financial barriers, giving startups a chance to concentrate on their growth and development rather than the burden of office costs.

Let us look at the Inspiring Journey of AltF Coworking and how it is Filling the Gap in India’s Workspace Market with initiatives like “Year-Zero”.

Where It All Started

The entrepreneurial scene in India has evolved significantly, with coworking spaces becoming a key part of the startup ecosystem. These spaces go beyond being just shared offices, they encourage collaboration, creativity and innovation, offering a modern alternative to traditional office setups. One such workspace is AltF Coworking. How did it all begin?

In 2016, the Indian workplace was undergoing a transformation. Traditional offices found it challenging to adapt to the rapidly growing startup culture and the rising demand for flexible work arrangements. Recognizing this shift, Sarthak Chhabra and Yogesh Arora, along with their partner Yogendra Vasupal, founded AltF Coworking in Gurgaon. They wanted lively, inspiring places where they could be creative, collaborate, and connect with others. AltF was created to meet this need, offering flexible and productive coworking spaces that cater to the evolving work culture. 

Identifying and Bridging the Market Gap

Sarthak and Yogesh recognized that many startups and small businesses were stuck in long-term leases and facing high overhead costs, which limited their growth potential. Their startup focuses on providing beautifully designed workspaces in prime locations like Delhi NCR, Mumbai, and Bangalore, equipped with modern amenities and a vibrant community atmosphere. This approach enables startups, SMEs, and even larger companies to reduce workspace costs while thriving in a dynamic environment.

Their "space-as-a-service" model sets them apart, especially now that remote and hybrid work are more common. By understanding the changing needs of businesses, AltF makes it easy for companies to adapt quickly without the usual hassles of traditional real estate.

AltF aims to fill the gap left by both established and smaller competitors, achieving over 90% occupancy and relying on less than 3% of its rental income from any single client. With plans to grow and reach an annual revenue of ₹320 crore by FY28, AltF focuses on designing spaces with customers in mind, using technology effectively, and offering competitive prices. This strategy positions it as a strong player in India’s fast-growing coworking industry. 

“Year Zero”: An Initiative Supporting the Next Generation

Year Zero program is designed for early-stage startups with founders aged 25 or younger who have not yet received any external funding. To qualify, startups need to submit a detailed business plan that outlines their goals, revenue model, and growth strategies.

Recognizing the challenges faced by new ventures in securing affordable office spaces, Year Zero provides a cost-free workspace, allowing startups to focus on their core business without worrying about high rental costs. AltF Coworking offers private team rooms or dedicated desks, high-speed Wi-Fi, lounge access, unlimited tea and coffee, and reprography services. This initiative creates a productive and collaborative environment where startup founders can work alongside like-minded entrepreneurs, fostering innovation and community.

The initiative has received over 500 applications in its first round, with selected startups gaining office space valued at Rs. 4-5 lakhs from a total campaign budget of Rs. 1 crore.

"The vision behind Year Zero is to provide meaningful support to young innovators. Even if just one startup from this initiative finds success, it would be a huge win for us," Sarthak Chhabra explains. "This campaign is our way of giving back and supporting the next generation of entrepreneurs," added Sarthak. 

This initiative is a first-of-its-kind effort in the coworking space landscape, showing a strong commitment to nurturing emerging enterprises. By offering a supportive environment, AltF Coworking enables startups to focus on innovation, positively impacting the broader business community and contributing to the growth of the startup ecosystem in India.

Crafting Cost-Effective Solutions

AltF’s approach was groundbreaking. It focuses on creating high-quality coworking spaces for micro businesses and small companies with fewer than 30 employees. By targeting these smaller enterprises, AltF uses a unique business model where they partner with landlords on a profit-sharing basis, which means they don’t have to invest a lot of capital or take on rental debts. This approach helps keep occupancy rates high and reduces the impact of market changes.

Currently, AltF operates in 11 locations across Delhi, Gurgaon, and Noida, with 5,600 available seats and plans to grow to 11,100 seats. Membership prices range from ₹5,000 to ₹12,000 per seat per month, depending on the location. The company positions itself as a cost-effective option, providing an excellent customer experience and tech-enabled services, giving it an edge over both established and smaller coworking spaces. Their strategy focuses on maintaining stable occupancy by catering to micro businesses and ensuring landlords receive consistent rent from multiple small clients rather than relying on a single large tenant.

Charting a Path Forward

AltF Coworking started in a small basement with just a few desks and has grown to have 11 coworking locations in Delhi NCR, offering 10,000 seats for small businesses. Their prices range from Rs. 5,000 to Rs. 20,000 per month for each seat, depending on the location. Despite challenges from the COVID-19 pandemic, AltF has seen strong growth, reaching Rs. 1 crore in revenue in its second year and Rs. 30 crore in FY 2023–24. They currently generate an annual recurring revenue (ARR) of Rs. 45 crore and aim to reach Rs. 80 crore soon.

Looking forward, AltF plans to expand to cities like Hyderabad and Pune, increasing their seating capacity. They continue to support small businesses and startups with initiatives like "Year Zero," showing their commitment to helping new entrepreneurs and supporting innovation in India.

With AltF Coworking, Sarthak Chhabra and Yogesh Arora are creating more than just a workspace; they are building a community where ideas thrive and careers grow. In today’s fast-changing work culture, AltF is a hub of creativity and teamwork, making it a great addition to Gurgaon’s startup scene.

Sarthak often reflects, “We wanted to create a place where ideas could flourish and partnerships could form. Our community is our greatest asset.” This focus on collaboration has transformed AltF into a hub for creativity, where members can exchange ideas and inspire each other.

AltF’s journey is all about innovation, building connections, and adjusting to what businesses need. As companies look for flexible and affordable workspace options, AltF shows how startups can change traditional industries with creativity and determination. With a solid presence in the Indian market and plans for growth, AltF is ready to lead the next phase of coworking in the country.

Image source: AltF Coworking