To Develop its Biz, WeWork India Secures Rs 200 crore from Investors

Coworking firm WeWork India has raised Rs.200 crore from investors as equity and debt to develop its business and turn profitable this year.

The Bengaluru-based WeWork India, offers flexible workspace to corporates and individuals, that sold close to 10,000 desks during the January-March quarter. It sale also includes about 7 lakh sq ft office space.

Karan Virwani, CEO, WeWork India states, "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.”

Furthermore, he states that the future of flexible workspaces looks bright he states that the right foundations and experience to provide safe, and flexible options for organization and manpower irrespective of its 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," says Karan.

However, the company's focus would continue to remain on providing a wide range of flexible offerings to meet its member’s evolving needs, he added.

In line, with its long term growth strategy and target for profitability, the company states that it has reported most successful sales quarter yet.

So for, WeWork has sold around 10,000 desks and it states that it would remain committed to support the growth of the flexible workspace industry alongside meeting long term sales and revenue targets as well.

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

In 2020, WeWork had witnessed 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 percent jump and now constitutes 60 percent enterprise members. WeWork Global had in 2017 associated with Embassy Group to enter Indian market. However, in June 2020, the firm had invested around $100 million (Rs 750 crore) in WeWork India.

WeWork India has more than five million sq ft of space leased in 35 locations, across NCR, Mumbai, Bengaluru, Pune and Hyderabad.