WeWork India, a fully-owned subsidiary of Bengaluru-based estate developer Embassy Group, will use the capital to increase market share and maintain leadership in an increasingly competitive co-working market, said Karan Virwani, CEO of WeWork India.
“The fresh round of capital from our long-term partners at WeWork global represents a vote of confidence in our strategy and will help us serve our community better,” said Virwani. “We have enough capital for long-term growth and to increase the profitability of the business.”
WeWork India had earlier told ET that it plans to raise $200 million (about ₹1,421 crore) to expand its India operations.
The company is targeting breakeven status by the end of this month. India is one of the key markets for WeWork.
WeWork India, which had earlier planned to increase the number of desks to 90,000 by the end of 2020, said the focus is now on profitability and then adding desks. “The flexible workspace industry in India and around the world is facing its biggest challenge yet. In that, we see a new opportunity that suits our members’ evolving needs,” said Virwani.
The world over, the Covid-19 pandemic has accelerated the shift to flexible workspaces, with businesses of all sizes looking to manage cash-flows effectively by moving costs to a variable model.
Sandeep Mathrani, global CEO of WeWork, said, “WeWork is excited to be providing financial assistance to transform the workspace environment in India. WeWork India’s financial performance has shown consistent growth, and with the fundamentals in place at a building level backed by the expertise of the Embassy Group, we believe the WeWork India business has the ability to be our growth vehicle and provide our members with an exceptional experience.”
WeWork entered into a partnership with Embassy Group in 2017 and started operations in the Indian market. Embassy Group holds 100% rights over WeWork India, which is an independent entity with the right to execute WeCo’s business in the country.
WeWork India has over 60,000 desks in 34 locations across six markets in the country, including Bengaluru, Gurgaon and Mumbai.