WeWork to sell remaining 27% stake in WeWork India for Rs 1,200 crore, says Report

WeWork Inc., the US office-sharing giant, is reportedly planning sell its entire 27% stake in its WeWork India, ET reported.

The deal, worth approximately Rs 1,200 crore, will also see the Embassy Group, a Bengaluru-based property developer, reduce its holding from 73% to 60%. The transaction involves new investors including the Enam Group family office, investment fund A91 Partners, and CaratLane founder Mithun Sacheti.

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Details of the transaction

While the company has not made any announcement regarding the stake sale, ET report said the transaction is primarily a secondary sale, although there could be a primary component added later.

The total 40% stake held by WeWork Inc. and Embassy Group is set to be acquired by the new investors. Currently, the deal awaits clearance from the Competition Commission of India (CCI).

Financial performance of WeWork India

Despite the financial troubles of its US parent, WeWork India has shown significant growth. The company reported revenue of Rs 1,300 crore in FY23, an increase of 68% from the previous year. Its net losses narrowed by 80% to Rs 146 crore. For the first six months of FY24, WeWork India's revenue was Rs 831 crore, marking a 40% year-on-year increase.

Expansion and market position

WeWork India operates 8 million sq ft of office space across major Indian cities with plans to expand by up to 2 million sq ft within a year.

The company aims to achieve revenue of Rs 1,800 crore in FY24. With over 70,000 paying members and 90,000 desks, WeWork India serves a diverse clientele, including large enterprises which make up 80% of its customer base, as well as startups and other small businesses.