WeWork India eyes ₹1,000cr funding from Enam, A91 Partners, others
WeWork India, a major player in the flexible co-working space sector, is reportedly in discussions to secure a funding round of ₹1,000 crore. The investment round is spearheaded by notable investors such as Enam's Vallabh Bhansali, A91 Partners, and CaratLane's Mithun Sacheti, among others. The company is aiming to raise fresh capital at a valuation of around ₹3,000-4,000 crore, according to Moneycontrol.
WeWork India has demonstrated robust performance and resilience
Despite facing global challenges, WeWork India has demonstrated robust performance and resilience. The company reported revenues of ₹1,400 crore in FY23, along with an EBITDA of ₹250 crore and a profit after tax of approximately ₹60 crore. This strong financial performance comes amidst the bankruptcy filing by its parent company, WeWork Global.
Embassy Group to buy back stake from WeWork Global
The capital raised from the funding round will be used to buy back stake from WeWork Global. However, this deal is pending approval from the Competition Commission of India (CCI) due to the significant fund infusion in a market leader. Currently, Embassy Group holds a majority stake of 72.5% in WeWork India, while 1 Ariel Way Limited owns the remaining 27.5%.
WeWork India has seen significant success with its business model
Launched in 2017 by the Embassy Group, WeWork India has seen significant success with its business model. This model has been so successful that it was adopted by WeWork Global in other countries including Israel, South Africa, Latin America, and China. With approximately 90,000 desks and an occupancy rate of over 80% - well above its break-even occupancy rate of 57-58% - the company is on track to grow 40% year-on-year.
