In an effort to meet the growing demand for flexible spaces, WeWork India announced that it has raised Rs 550 crore from funds managed by BPEA Credit. The money would be used for future expansion and acquisition opportunities.
To join the Indian market, WeWork Global teamed up with Embassy Group, a real estate company based in Bengaluru. WeWork India currently offers a portfolio of 70,000 desks scattered across 41 locations in six cities—Bengaluru, Mumbai, Gurugram, Noida, Hyderabad, and Pune—with a total floor space of 6 million square feet.
According to WeWork India, the funds will be deployed for prospective consolidation opportunities and future growth. WeWork Global gave WeWork India a loan of Rs 750 crore in 2020, which the company claims was crucial in keeping the business stable during the pandemic. About 27% of WeWork India is owned by WeWork Global.
“Flexibility is paramount in today’s workforce and the investment by BPEA Credit stands testament to the massive growth opportunity for flex workspaces in India,” said Karan Virwani, CEO, WeWork India.
Karan said the investment also validates WeWork India’s strong fundamentals and healthy business model. “We are laser-focused on fuelling growth opportunities and fortifying our position as the leading flexible workspace brand with customisable and innovative solutions for all businesses,” Virwani said.
WeWork India expects income this fiscal to rise to Rs. 1,300 Cr
30% of WeWork India‘s clients are startups, independent contractors, and SMEs, while 70% of its clients are businesses. In an interview with PTI earlier this month, Virwani stated: “We expect our income for this fiscal year to increase to roughly Rs 1,300 crore. In 2021, the income was Rs 760 crore.”
The co-working space reported a positive EBITDA (earnings before interest, taxes, depreciation, and amortisation) but also produces free cash flow to grow the company and maintain the growing pace. From a deficit of Rs 120 crore in 2021 to a profit of Rs 175 crore in the next calendar year, the EBITDA has increased dramatically. He added.
Regarding the expansion, Virwani had stated that the portfolio would total 8 million square feet by the end of 2023 and 6.5 million square feet by March.