December 26, 2022: WeWork India, the country’s leading flexible workspace provider, has tied-up INR 550 crores from funds managed by BPEA Credit, one of the largest private credit platforms in India. The financing comes close to WeWork India’s bullish outlook towards expansion and its robust performance in FY23.
Commencing operations in India in 2017 with 100K sq ft and 2200 members, WeWork India, over the last five years, has progressed to 62K+ members and over 6mn sq ft across 41 locations and six cities in India – Bengaluru, Mumbai, Gurugram, Noida, Hyderabad, and Pune. WeWork India’s member portfolio comprises 70% of enterprises such as 3M, Khaitan & CO, Honeywell, Dyson and KIA, while 30% includes startups, freelancers, and SMEs.
Earlier this year, the company announced its first profitable quarter, followed by new leasing announcements across its major operational cities. Following WeWork India’s strong performance in providing the best workspace solutions and supporting India Inc, the funding will further strengthen WeWork India’s position as a revolutionary brand reshaping the future of work.
“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 and 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.” said Karan Virwani, CEO, WeWork India.
In 2020, WeWork India raised INR 750 crores via funding from WeWork Global which played an instrumental role in stabilising the business during the pandemic. WeWork India turned profitable this year and locked a revenue of INR 1300 cr this year-end. At present, the EBITDA jump is 250% from a loss of INR 120 cr in CY21 to a profit of INR 175 crore in CY22. The company also recently made its first investment in the Bengaluru-based conferencing and collaboration platform Zoapi to reinforce its commitment to offering innovative and immersive solutions to businesses.
With India Inc transitioning towards a hybrid work model, there has been a growing demand for flexibility and a sense of community among today’s workforce. Prompted by companies’ evolving requirements and the feasibility of their existing business models, WeWork India remains prudent about its overall business strategy. With a commitment towards meeting the industry’s increasing demands, the brand intends to offer a superior workspace experience built upon its core principles of flexibility, accessibility and community.
Avendus Capital Private Limited was the exclusive investment banking partner for WeWork India on this transaction.