WeWork India, renowned for its flexible co-working spaces, is currently in discussions to secure a significant funding round totaling Rs 1,000 crore. The funding is anticipated to be led by prominent investors including Enam’s Vallabh Bhansali, A91 partners, CaratLane’s Mithun Sacheti, and others. This investment is expected to value WeWork India between Rs 3,000-4,000 crore, according to three sources familiar with the matter, as reported by Moneycontrol.
Despite challenges faced by its global counterpart, WeWork India has emerged as a standout performer. The company reported impressive revenues of Rs 1,400 crore in FY23, accompanied by an EBITDA of Rs 250 crore and a profit after tax of approximately Rs 60 crore.
The intended use of the raised funds includes the repurchase of stake from WeWork Global, which recently filed for bankruptcy, as per insider information. However, progress on the deal has been hindered by regulatory hurdles, notably with the Competition Commission of India (CCI) due to the significant capital infusion into a market leader.
Currently, the Embassy Group holds a controlling stake of 72.5 percent in WeWork India, with the remaining 27.5 percent owned by 1 Ariel Way Limited, a UK-based subsidiary of WeWork Global.
Established in 2017, WeWork India initially operated as a wholly-owned subsidiary of the Embassy Group until 2020 when international interest surged. WeWork Global injected $100 million into the India franchise, acquiring approximately 27.5 percent equity.
WeWork India’s success has served as a blueprint for its global counterparts, with its profitable model garnering attention. Jitu Virwani, the Chairman of Embassy Group, highlighted the stark contrast between WeWork India’s self-sufficiency and the global team’s reliance on external funding. Virwani emphasized that WeWork India’s success has set a benchmark for the global entity to emulate worldwide.
As discussions surrounding the funding round progress, WeWork India remains resilient, navigating through the complexities of the co-working industry with unwavering momentum.
