Flexible workspace operator WeWork has filed for IPO in India
What's the story
WeWork India, a leading flexible workspace provider backed by the Embassy Group, has filed its draft papers with the Securities and Exchange Board of India (SEBI).
The company plans to raise funds via an initial public offering (IPO) which will be entirely an offer-for-sale of 43.7 million equity shares by existing shareholders.
This is a major step in WeWork's growth strategy in the Indian market.
Share distribution
Embassy Group to sell majority of shares in the firm
The promoter of WeWork India, Embassy Buildcon LLP, will sell 33.4 million equity shares in the IPO.
Another 10.3 million shares will be offered for sale by investor 1 Ariel Way Tenant.
Embassy Buildcon LLP currently holds a controlling 76.21% stake in the company, while the rest are public shareholders including a 23.45% stake owned by UK-based 1 Ariel Way Tenant.
Business overview
WeWork India's operational footprint
Since its inception in 2017, WeWork India has emerged as the country's biggest flexible workspace operator by total revenue for three consecutive fiscal years.
The company operates 59 centers in eight major Indian cities, providing 94,440 desks in a 6.48 million square feet leasable area.
Although it reported a loss of ₹135.8 crore in fiscal year 2024, the company's revenue surged 26.7% to ₹1,665.1 crore.
Fiscal recovery
WeWork India's financial turnaround and market competition
In the first half of fiscal year ending September 2024, WeWork India posted a profit of ₹174.6 crore on revenue of ₹918.2 crore, marking a major turnaround.
WeWork India's primary competitor in the Indian market is Awfis Space Solutions, another flexible workspace provider that recently went public.
This move highlights the increasing competition and opportunities in India's flexible workspace space.