WeWork to Sell 27% Stake in Indian Arm for Rs 1,200 Crore: Report

• ByStartupStory     |    April 23, 2024

WeWork India, a prominent player in the coworking space, is poised to divest a significant portion of its stake as part of a strategic move, according to reports from The Economic Times. The transaction entails the sale of a 27% stake held by its US parent, WeWork Inc., facilitated through founder Adam Neumann, to prominent investors in India.

Enam Group’s family office, along with investment fund A91 Partners and Mithun Sacheti, Founder of Caratlane, are reportedly in the process of acquiring the stake valued at Rs 1,200 crore. While the deal primarily involves the sale of existing shares, there is potential for a primary component, as per sources familiar with the matter.

The share transfer is being managed by Embassy Group, which presently holds a 73% stake in WeWork India. However, the completion of the transaction is contingent upon obtaining clearance from the Competition Commission of India (CCI). WeWork India has refrained from commenting on the developments.

Earlier assurances from WeWork India’s CEO, Karan Virwani, emphasized that despite challenges faced by its US parent, operations in India remained robust. The company notably achieved a revenue of Rs 1,400 crore in the fiscal year 2022-23, with earnings totaling Rs 250 crore.

However, WeWork’s global parent, backed by SoftBank, disclosed a significant net loss of $696 million in the first half of 2023. Despite a decrease from the previous year’s figures, long-term debt remained substantial at $2.9 billion as of June 30, 2023.

The collaboration between WeWork and Embassy Group dates back to 2017 when the real estate firm facilitated WeWork’s entry into the Indian market through a joint venture. Recent expansions include securing office spaces in Bengaluru, Hyderabad, and Delhi, reflecting the company’s commitment to its presence in key Indian cities.

The transaction marks a significant development in WeWork’s strategy to streamline its operations and strengthen its position in the Indian coworking landscape.

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