Even though WeWork India’s parent company filed for bankruptcy on a global scale, CEO Karan Virwani is optimistic about his company’s ability to rise above the competition. After months of conjecture, the WeWork Global company filed for Chapter 11 bankruptcy in the US, allowing for corporate restructuring and defense against demands from creditors.
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“WeWork India operates independently of WeWork Global, and our operations will not be affected in any manner. We will continue to hold the rights to use the brand name as part of the operating agreement, while serving our members, landlords, and partners as usual. WeWork India is backed by majority stakeholder Embassy Group, which is committed to investing in the future of our business,” the CEO reportedly said in an interview.
Virwani said that despite the global entity’s problems, WeWork’s expansion goals for its India operation are still intact and the company is in good condition.
Being asked on the company’s upcoming plans and targets, Virwani revealed, “Every year, we intend to expand between 1.5 and 2 million square feet and more than 20,000 desks. Our goal is to expand our capacity to 8 million square feet and 100,000 desks during the next year. We intend to scale digital products even higher in the upcoming months, since they grew by 46.5% between Q1 and Q2 of this year.”
Elaborating on the same, he further stated, “Since the pandemic, there has been a 20% increase in WeWork India’s enterprise desk occupancy. We have seen average prices going up by 10% annually to INR 20,000 per seat at our centre, with average occupancy of 82%. This is indicative of a larger shift in the way businesses operate, with a growing preference for workspaces that maximise creativity, productivity, and collaboration. We are confident this trend will likely see an upward trajectory in the coming years.”
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Moreover, the CEO stated that the India branch, for which Embassy owns the rights to use the WeWork name, has had tremendous success recently, particularly in the wake of COVID-19. WeWork India’s top line increased from INR 800 crore to INR 1,400 crore in FY2023—a 75% year-over-year growth. However, it also started to turn a profit at the EBITDA (earnings before interest, taxes, depreciation, and amortization) level. The previous fiscal year, WeWork India reported an EBITDA of INR 250 crore.
(With inputs from FE, BT)
