StartupTalky presents Recap’23, a series of in-depth interviews where we engage with founders and industry leaders to explore their growth in 2023 and their predictions for the future.
The co-living industry has emerged as a transformative force in the real estate sector, redefining the way individuals experience communal living. This innovative housing model goes beyond traditional renting, offering residents not just a place to stay but a vibrant community-driven lifestyle.
According to a recent report by Cushman & Wakefield India, the co-living market in India is forecast to grow at a compound annual growth rate (CAGR) of 17% from 2020 to 2025, indicating an upward trend. This anticipated expansion is set to drive the market’s value to an impressive USD 40 billion by 2025.
In a recent Recap’23 interview, we at StartupTalky had the privilege of connecting with Ajay Nemani, CEO of FF21. We examined how FF21 is making a mark for itself within the co-living industry, analyzing its strategies and unique positioning.
StartupTalky: What service does FF21 provide? What was the motivation/vision with which you started?
Ajay Nemani: Founded in 2017, FF21 is a Bangalore co-living place that offers affordable and fully furnished accommodation for young professionals and learners. We operate with six properties in various Bangalore neighbourhoods, including HBR Layout, Kundanahalli, Mahadevapura, ITPL, and Thubarahalli, collectively accommodating around 1500 residents.
Our objective for launching FF21 was to establish a community-driven living experience that encourages collaboration, networking, and personal development. We sought to create a welcoming and convenient environment where people could succeed both personally and professionally, establishing a sense of connection and support among our residents. In a busy metropolis like Bangalore, the working population is rising, and they need a place that fits their specific needs and provides them with a sense of belonging. FF21 is a home for people overcoming the challenges of being separated from their roots, not just a place to stay. When people relocate, we believe they should have access to a community that supports their growth and adaptability, as well as a place to call home.
StartupTalky: What new services have been added in the past year? What is/are the USP/s of the Co-Living Industry service?
Ajay Nemani: We have worked on a few significant efforts in terms of spatial design and process efficiency during the last year. In terms of space, we established the concept of FF21 pods, in which we provide clients with completely equipped private rooms at affordable rates. With the installation of our in-house software platform, we can ensure that customer tickets are successfully tracked and closed. We want to resolve and respond to client tickets more effectively with the implementation of our OTP-based ticket closure system. We’ve also included a card-based task management application to help us keep track of scheduled and unscheduled work.
Our commitment to establishing a lively community and delivering great amenities is one of the unique selling factors (USPs) of our co-living service at FF21 in Bangalore. Exclusive networking events, workshops, and social gatherings are available to our residents, encouraging significant relationships and partnerships. Furthermore, our professionally designed areas provide the ideal balance of comfort, style, and functionality, ensuring that every resident feels at ease.
In addition to it, Co-Living Industry property provides more than just a place to stay. It’s an odd concept that mixes the conveniences of working, staying, and playing all under one roof. Without leaving the premises, one can effortlessly switch between a working and a resting demeanour. From a pleasant location to stay to a decent working atmosphere to the best entertainment alternatives, FF21 offers it all.
StartupTalky: How has the Co-Living Industry changed in recent years and how has FF21 adapted to these changes?
Ajay Nemani: In recent years, the Bangalore co-living business has seen major developments. With the increasing number of job opportunities in the city, the market has become more competitive and dynamic as demand for flexible housing options has increased. Following COVID, there is a greater demand than ever for better hygienic settings in terms of clean space and hygienic food. The development of the hybrid working style has enhanced the desire for privacy and personal space. People are now asking for coliving spaces that not only provide clean and sanitary conditions but also private rooms or offices where they can work without distractions.
In response to these developments, our organization has changed by constantly improving our offers and services to meet our residents’ changing demands. We have improved community involvement activities, added modern amenities, and embraced technology to expedite the booking and management operations. Our major focus since the beginning has been on providing larger common areas to provide our residents with the comfort of working and resting in the same space. In addition, we work with professional food vendors to provide residents with a variety of meal options. This collaboration guarantees that our residents have easy access to great and diversified food selections, which improves their entire living experience with us.
Chayanika Goswami
StartupTalky: How does FF21 stay up-to-date on the latest trends and developments in Co-Living Industry?
Ajay Nemani: Staying current on the newest trends and advances in this business is vital to my professional development. To that end, I actively attend industry conferences, workshops, and webinars. In addition, I often interact with thought leaders and professionals via online forums and social media platforms to obtain insights and stay up to date on the newest developments. Furthermore, we do market research and analysis regularly to discover developing trends and consumer preferences to adjust our company strategy accordingly. We adjust our services and solutions to fit their shifting demands by regularly communicating with our residents and staying informed about changing work trends and preferences. This proactive approach allows us to keep ahead of the competition and preserve a competitive edge.
StartupTalky: What key metrics do you track to check the company’s growth and performance?
Ajay Nemani: We track numerous critical parameters to analyse our company’s growth and performance. Revenue growth, client acquisition and retention rates, occupancy rates, and average revenue per user are examples of these. Furthermore, we keep a careful eye on the company’s financial health by measuring profitability statistics like gross margin and operating margin. We acquire significant insights into our company’s overall success and trajectory by evaluating these measures. Being aware of customer feedback further helps us understand our growth and performance. Keeping track of regularly scheduled activities leads to more customer satisfaction and growth eventually.
StartupTalky: What were the most significant challenges FF21 faced in the past year and how did you overcome them?
Ajay Nemani: While the coliving sector in India has risen significantly, it has not been without challenges. The resident’s commitment to a longer duration stay has been compromised as a result of the hybrid working style. Furthermore, Post Covid, the increasing demand for shared spaces, has resulted in the entry of numerous new competitors into the business. Even if demand has returned to normal levels, competition remains rigid.
To overcome these challenges, FF21 implemented various strategies. Firstly, we focused on enhancing the overall resident experience by offering flexible lease options to attract long-term commitments. By continuously adapting and innovating our offerings, we were able to maintain a strong position in the market despite the increased competition.
StartupTalky: Good service is something everyone is talking about in the service industry. How do you ensure that FF21’s clients are happy?
Ajay Nemani: We focus on understanding our clients’ wants and preferences to ensure their complete satisfaction. We actively seek client feedback and make necessary modifications based on their suggestions. Our committed team of staff members is trained to provide customized attention and timely support with any problems or issues that may occur during their stay. This allows us to obtain insights into their experience and make the necessary changes to improve their overall satisfaction.
Furthermore, by organizing community events and activities, we seek to create a warm and inclusive environment for our clients, encouraging a sense of belonging. We aim to ensure that our clients are happy and satisfied with their stay by constantly working to improve our services and create a great living experience.
StartupTalky: What are the different strategies FF21 use for marketing? Tell us about any growth hack that you pulled off.
Ajay Nemani: Because everything these days is online, all of our marketing efforts are primarily centred on digital media. To reach our target audience and generate compelling content that resonates with them, we use social media platforms such as Facebook, Instagram, and LinkedIn.
Collaboration with local influencers and bloggers in the city was one growth hack that we effectively utilized. We were able to tap into their established fan base and generate awareness around our coliving facility by working with them. This not only raised brand recognition but also encouraged more potential buyers to visit our website and schedule a tour. Aside from that, we feature our inhabitants on social media to give a sneak glimpse into the ambience of the property.
StartupTalky: What are the important tools and software you use to run FF21’s business smoothly?
Ajay Nemani: We rely on a variety of critical tools and software to maintain the seamless operation of our organization. We can easily manage appointments, track payments, and keep a comprehensive database of our clients thanks to our in-house software, which is curated with details from the customer’s first interaction until the checkout process. We also employ third-party technologies for operations as necessary. Residents can use our app to effortlessly contact our staff, get crucial information about the coliving space, and request any necessary repairs or services. In addition, we use project management tools to optimise internal processes and promote optimal team cooperation.
StartupTalky: What opportunities do you see for future growth in the Co-living industry in India and the world? What kind of difference in market behaviour have you seen between India and the world?
Ajay Nemani: The co-living sector in India has enormous potential for future expansion. The concept is becoming increasingly popular as the younger generation seeks flexible and affordable housing options. India, with a huge population of millennials and Generation Z, represents a significant market opportunity for the co-living business to grow and develop.
However, in comparison to the worldwide market, India’s co-living sector remains small and underdeveloped. Co-living has gained traction and has become an established trend in other regions of the world, such as Europe and the United States. Co-living is becoming more popular as a mainstream housing choice in many regions, as seen by market behaviour.
Muskaan Kapoor
StartupTalky: What lessons did the FF21 team learn in the past year and how will these inform FF21’s plans and strategies?
Ajay Nemani: In the ever-changing coliving industry, our team has learned the value of flexibility and adaptability over the last year. We’ve discovered that being able to quickly change our offerings and services based on our residents’ requirements and preferences is critical for success. Moving forward, these lessons will guide our future plans and initiatives, ensuring that we prioritise constant innovation and remain sensitive to our target audience’s changing demands.
StartupTalky: How do FF21 plan to expand the Customers, service offering, and team base in the future?
Ajay Nemani: We intend to spread our services in other sections of Bangalore and other cities over the next 15-18 months. In terms of service possibilities, we intend to investigate various inventory models. We also intend to increase our bed capacity by 2500-3000 in the next 18-24 months. When it comes to hiring for our team, we want to find talented people who can contribute to our growth and improve the customer experience. We are optimistic about attaining our expansion targets in the near future by consistently enhancing our services, extending our inventory, and strengthening our workforce.
StartupTalky: One tip that you would like to share with another Service company founder?
Ajay Nemani: One thing that any business owner must remember is to keep the consumer at the centre of everything they do. Understanding the impact of each decision made on the customer experience and satisfaction is critical. It is critical to regularly solicit client input and change to fulfil their wants and expectations. It is critical to adhere to the financial plans and budgets set aside for the company’s growth while also ensuring that customer happiness remains a top concern. Furthermore, cultivating a strong company culture that prioritizes customer-centricity and pushes staff to go above and beyond for customers can significantly contribute to the business’s success.
StartupTalky extends its gratitude to Mr. Ajay Nemani for dedicating his valuable time and generously sharing his insights with all of us.
