Last week we reported about Sofia being among the top 20 coworking markets in Europe, but we missed an important detail from the shared office ecosystem in Bulgaria – OfficeRnD. The founded in 2015 startup has developed a management system for coworking spaces, that is used by most of the utilities in Bulgaria, but also some of the biggest brands in the business worldwide.
This week the company received a Coworky award for being the best tech to run space at the international Global Coworking Unconference Conference. Another 13 companies from all over the world (not all of them direct competitors) were nominated in the same category. “This is a significant milestone and validation for us on our mission to make coworking the way of working,” shares the team.
Owning the space and the community
Less than four years on the market, €1.5M funding, 1000 locations around the globe, $100K monthly recurring revenues– these are all the relevant figures one needs to know about the OfficeRnD.
The company was started by Miroslav Nedyalkov and Miroslav Miroslavov in 2015 with the idea to change the way coworking spaces are managed by automating part of the tasks and leaving more space for community management and communication. Why? Coworking operators are often overloaded with tasks such as resources management and billing, instead of taking care of the communication between the office members, which is indeed the heart of the coworking business. Its product is basically an ERP system for coworking spaces, flexible and serviced offices, which is used by 400 brands in their 1000 locations in the US, the UK, partly Europe, Australia, New Zealand.
Growing market to conquer
“There are around 30K coworking spaces, two-thirds of which are small and medium. It’s estimated that the market for shared and flexible offices will grow to 30% of the entire office market in the next five years,” says Miroslav Miroslavov. OfficeRnD has some impressive numbers but is far from reaching its potential and is also not alone on the market.
On the one hand, the Bulgarian startup competes with the UK based Nexodus (won the Coworky award last year) and Essensys, and several smaller players in the space. In the same time, some spaces prefer to build such systems in-house, like WeWork is successfully doing and other medium brands try. The unique selling point of the platform, according to Miroslav Miroslavov, is the balance between in-depth tackling of everyday pains of space managers and the usability.
The next level
In the next several months Miroslavov has ambitious plans for growth. “The minimum what we are aiming to reach is $200K monthly recurring revenue by the end of 2019,” he states. The company is also expanding its international presence – setting two sales representative offices in the US, where 40% of the business is, and another one in New Zealand.
Of course, to achieve this growth the factors that need to come in place are two – talent and capital. By the end of the year, the team should grow from 39 to 60 people, mostly engineering capacity. Another bigger funding round is also already on the agenda.