PremiumWeWork India said it has raised ₹200 crore, through a mix of debt and equity, from a domestic and foreign investor for future growth. The company didn’t disclose the names of the two investors
BENGALURU : Co-working startup WeWork India on Monday said it has raised ₹200 crore in a mix of debt and equity from one domestic investor and one foreign investor. The company didn’t name the investors.
The Indian affiliate of New York-based WeWork said it leased 10,000 desks across 700,000 sq ft in the March quarter despite the slow pace of overall leasing of commercial office space during the period. Around 70-80% of the space has been taken up by large companies while the rest is by smaller firms and individuals.
Despite the recovery in business between January and March, the second wave of covid has hit demand and pace of people returning to traditional and co-working offices.
“March quarter saw the highest rise in demand with more companies wanting flexible space. With the current restrictions, Maharashtra is impacted but demand is still there. Companies want space but they may move in a bit later, but no one has retracted from their commitments. The future of co-working spaces is bright," Karan Virwani, CEO, WeWork India said in an interview.
Last year, WeWork Global committed $100 million in its Indian arm. In 2019, WeWork India raised around ₹500 crore of debt.
This fresh capital raise shows WeWork will continue to drive belief from investors in the flexible workspace industry, the company said in a statement. After a challenging period due to last year’s lockdown, WeWork has bounced back and pivoted to adapt favourably through new flexible product offerings, it added.
“We are poised for sustainable long-term growth and are aiming for profitability in 2021. Our focus remains on providing a range of flexible offerings to meet our members’ evolving needs. The new capital we have raised will help us in continuing our upward momentum and truly explore the potential of flexible workspaces in the Indian market," Virwani said.
Over the last year, WeWork has also seen strong demand from enterprises, which are now looking at flexible workspaces as a viable long-term real estate option. WeWork’s enterprise portfolio has seen a 10% jump to now constitute 60% enterprise members, and facilitated the opening of its new workspace, Embassy Manyata NXT in Bengaluru.
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