WeWork India, the Indian affiliate of New York-based co-working startup WeWork Global, is set to receive $100 million funding from its parent to address the long-term opportunity that India has as a flexible workspace market.
In October, WeWork India had said it plans to raise $200 million to fund its growth with rising demand for shared workspaces in the country. It had raised around ₹500 crore of debt last year and had said it will raise another $200 million through a combination of equity and structured debt.
Embassy Buildcon Llp is the holding company of WeWork India, that is owned by Jitu Virwani, who heads real estate firm Embassy Group. WeWork India had also said that if it is unable to raise money then Embassy may also pump some capital into its co-working business on its own.
Sandeep Mathrani, CEO of WeWork Global said, “WeWork is excited to be providing financial assistance to transform the workspace environment in India. WeWork India’s financial performance has shown consistent growth, and with the fundamentals in place at a building level backed by the expertise of the Embassy Group, we believe the WeWork India business has the ability to be our growth vehicle and provide our members an exceptional experience.”
We Co. or WeWork Global said the additional capital is a reinforcement of the potential in this category and an affirmation of India’s continued prospects in attracting global capital. “This financing will support WeWork India’s long-term strategy, focused on exceptional member experience and strong financial performance at the building level,” WeWork Global said.
Karan Virwani, CEO, WeWork India said the fresh round of capital from WeWork represents a vote of confidence in its strategy.
“…The flexible workspace industry in India and around the world is facing its biggest challenge yet. In that, we see a new opportunity that suits our members’ evolving needs. This is driven by an acceleration towards variable real estate costs, the confidence of safe and well-managed workspaces for their employees, and the growth opportunities that are intrinsic to the WeWork community. will help us serve our community better,” Virwani said.
WeWork India said it is looking to navigate this transformation by prioritising focused growth in the Indian market over the next 36 months.
“…WeWork India is already profitable and plays an important role in the global scheme of business for WeWork. The WeWork India business will be focussing on showcasing their strengths through their extensive network of partners and vendors in the market, the startup said.
WeWork India centres or buildings are profitable on an individual basis, but it is yet to turn profitable at the company level, which was expected to happen this year.