Indian start-up Friyey Space has announced its closure due to a lack of customers. The company, founded by Yogesh Thore, recruited partners who offered their nightclubs, bars, and restaurants as co-working spaces during normal business hours. However, this concept was not sustainable in the long term.
The idea of using unused rooms during the day as co-working spaces initially seemed promising, as it saved landlords money in real estate costs. The landlords received additional income while co-workers had access to affordable workspaces. The cost was just 1.10 euros per day, and bookings could be made through the Friyey app. However, there were some drawbacks for users, as the available equipment often did not meet minimum requirements. There were limited ergonomic chairs and external monitors, and food and drink were not always available. These could be ordered through another app operated by Friyey.
Despite having over 500 locations available and more than 24,000 people using the spaces, Friyey needed additional funds to stay afloat. Unfortunately, these funds did not materialize, leading to the company’s closure. Founder Yogesh Thore posted on LinkedIn that Friyey is now hiring and expressed gratitude for the innovation, change, and entrepreneurship experienced during the company’s existence. Thore previously acknowledged in May the need to shut down the business, but had hoped for a chance to revive it. However, profitability remains a challenge for co-working spaces, as seen with WeWork’s $264 million loss in the first quarter of 2023, despite a 73% occupancy rate.
