WeWork India revenue to rise 70% this year; to expand portfolio for growth: CEO
2 min read . Updated: 13 Dec 2022, 07:36 PM IST
PremiumThe company is expanding its portfolio to achieve similar growth in 2023, he added.
Co-working major WeWork India's revenue is set to jump 70 per cent this calendar year to around ₹1,300 crore on rising demand for flexible office space said CEO CEO Karan Virwani.
The company is expanding its portfolio to achieve similar growth in 2023, he added.
Bengaluru-based WeWork India has its presence in six major cities, including Delhi-NCR, Mumbai and Bengaluru. Its current portfolio comprises 6 million square feet of flexible office space with total capacity of around 70,000 desks across 41 centres.
CEO Virwani highlighted that the company has completed five years of operations, during which its portfolio and revenue have grown significantly.
"Our revenue for this calendar year is estimated to grow to about ₹1,300 crore. The revenue was ₹760 crore in 2021," he said in an interview with news agency PTI.
WeWork India is not only EBITDA (earnings before interest, taxes, depreciation, and amortisation) positive but also generating free cash flow to expand business and sustain the growth momentum, Virwani said.
He said the occupancy rate has touched almost 90 per cent.
"70 per cent of the demand in our facilities is coming from large enterprises," he said, adding that actual footfall in its offices has risen to 60-70 per cent.
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"The footfall will not increase much as many corporates continue to offer hybrid working," said Virwan.
On the expansion, he said the portfolio would reach 6.5 million square feet by March next year and 8 million square feet by December 2023.
"In terms of desks, we will reach around 1 lakh by end of the next calendar year," he added.
The company already has presence in Noida and Gurugram in the Delhi-NCR market and is now looking at entering Delhi.
On plans to raise funds, Virwani said the business is generating enough cash to meet capital expenditure (capex).
The requirement for capex is not much as landlords owning office buildings are ready to make investments, he noted.
In 2017, WeWork Global had partnered with Bengaluru-based Embassy Group to enter the Indian market.
Embassy Group, which is one of the leading real estate firms in the country, has also launched the country's first real estate investment trust (REIT).
In June 2020, WeWork India, which seeks to become a 'one-stop shop' to meet all requirements related to workspaces, had raised USD 100 million from WeWork Global.
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