WeWork India Introduces ESOP Liquidation Scheme Allowing 25% Surrender of Vested Stock Options
- ByStartupStory | April 14, 2023
WeWork India introduces ESOP surrender initiative for employees, allowing up to 25% of vested stock options to be surrendered as a token of gratitude for employee commitment and faith in the company. WeWork India’s CEO, Karan Virwani, expresses gratitude to employees for their commitment and announces ESOP surrender initiative as part of the company’s employee-centric approach. Over the past six years, WeWork India has achieved significant milestones and aims to empower employees through wealth creation. The ESOP surrender plan is a part of the company’s commitment to doubling down on employee-centric approaches.
Established in 2017, WeWork India operates as a joint venture between Embassy Group, a prominent real estate company, and WeWork International. Following a franchisee model, WeWork India offers flexible workspace solutions to both enterprises and startups. With a presence in 45 locations across major Indian cities including Bengaluru, Mumbai, Gurugram, Noida, Hyderabad, and Pune, WeWork India has expanded rapidly in the past six years, boasting over 6.5 million square feet of signed assets. The platform claims to have a member base of over 62,000 people who utilize its services. Notably, a majority of its revenue is generated from enterprises, constituting 70% of its client base, while startups, SMEs, and freelancers comprise the remaining portion.
Interestingly, WeWork India’s ESOP liquidation program comes just four months after securing a substantial funding of INR 550 crore from BPEA Credit, a Hong Kong-based private equity firm. In April 2021, the Indian franchisee of WeWork also raised INR 200 crore in debt and equity from investors. Notably, WeWork India made strategic moves such as acquiring the conferencing and collaboration platform Zoapi in October of the previous year. Additionally, the company achieved profitability in November of the same year.
In contrast to its franchisee owner, WeWork International, which has faced criticism for lax corporate governance, an uncertain business model, and profitability concerns, WeWork India has shown a different trajectory. Despite the challenges faced during the pandemic, WeWork India has achieved profitability, showcasing a notable performance. As the demand for flexible workspace options continues to grow, a report estimates that coworking spaces could occupy 75 million square feet, accommodating 1.03 million seats by 2025. In the Indian market, WeWork India competes with local players such as Table Space, Awfis, Innov8, and iSprout.
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