WeWork India raises Rs 200 crore from investors to grow business, become profitable in 2021

NEW DELHI: Coworking major WeWork India on Monday said it has raised Rs 200 crore from investors as equity and debt to grow its business and become profitable this year. Bengaluru-based WeWork India, which provides flexible workspace to corporates and individuals, sold 10,000 desk during the January-March quarter comprising about 7 lakh sq ft office space.

WeWork said it has raised Rs 200 crore from investors through a mix of debt and equity. "The new capital we have raised will help us in continuing our upwards momentum and truly explore the potential of flexible workspaces in the Indian market," said Karan Virwani, CEO, WeWork India.

Stating that the future of flexible workspaces looks bright, he said the company has the right foundations and experience to provide safe, flexible options for companies and workforce of all sizes. "While last year was challenging for the industry, we have seen a steady uptick in demand from members of all sizes, and we will continue to remain bullish and focus on the growth of flexible workspaces in the country. "We are poised for sustainable long term growth and are aiming for profitability in 2021," Virwani said.

He added that the company's focus would remain on providing a wide range of flexible offerings to meet its members' evolving needs. In line with its long term growth strategy and aim for profitability, the company said that it has reported most successful sales quarter yet.

With 10,000 desks sold, WeWork said it remains committed to supporting the growth of the flexible workspace industry while also meeting long term sales and revenue targets.

Despite the slow absorption for commercial real estate with 5.53 million sq ft leased in Q1 2021, WeWork remained bullish with driving sales and net absorption, with more than 7 lakh sq ft of area being sold (over 10 per cent of the total leasing in the market).

Over the last year, WeWork said it has seen a strong demand from enterprises that are now looking at flexible workspaces as a viable long-term real estate option.WeWork's enterprise portfolio has grown by 10 per cent jump and now constitutes 60 per cent enterprise members.

WeWork Global had in 2017 partnered with Embassy Group to enter Indian market. In June last year, it had invested USD 100 million (about Rs 750 crore) in WeWork India. WeWork India has over 5 million sq ft of space leased in 35 locations, across NCR, Mumbai, Bengaluru, Pune and Hyderabad.

Globally, as of Q1 2020, WeWork Global had 828 locations in over 149 cities and 38 countries. Embassy Group is a major player in the Indian real estate market. It has also launched the country's first real estate investment trust (REIT).