WeWork India, a leading name in the flexible workspace industry, has successfully raised ₹500 crore (approximately $57.8 million) through a rights issue.
The funds will primarily be utilized to reduce debt, aligning with the company’s vision of becoming debt-free and lowering its cost of capital.
Operating in eight major cities, WeWork India manages over 1 lakh desks and has established strong partnerships with key stakeholders, including landlords, International Property Consultants (IPCs), and members. Since entering the Indian market in 2016, the company has grown its footprint to 63 operational centers across Chennai, New Delhi, Gurugram, Noida, Mumbai, Bengaluru, Pune, and Hyderabad.
WeWork India’s financial performance has also been on an upward trajectory. In the fiscal year ending March 2024, the company reported a 26.7% increase in revenue from operations, reaching ₹1,665 crore compared to ₹1,315 crore in the previous year, according to its filings with the Registrar of Companies.
This growth comes despite significant challenges faced by WeWork globally. In late 2023, its US-based parent company filed for Chapter 11 bankruptcy but managed to emerge from it within a few months. In contrast, WeWork India has maintained stability and is now exploring opportunities for an initial public offering (IPO), targeting a valuation of $2-2.5 billion.
India’s co-working sector has been gaining momentum, with Awfis becoming the first Indian co-working startup to go public. Additionally, Smartworks received SEBI approval for its IPO, and other players like Simpliwork, Table Space, DevX, and Indiqube are reportedly considering similar moves.
WeWork India’s ability to raise substantial capital through a rights issue highlights its resilience and commitment to growth. As the demand for flexible workspaces continues to rise, the company’s strong operational base and financial strategy position it as a key player in India’s co-working industry.
