Flexible workspace provider WeWork India has outlined a ₹400 crore annual capex plan for significant expansion in major cities. 

“We will be adding close to 2 million sq ft of office space annually in the top 7-8 cities. Typically, we would spend around ₹300-400 crore in capex each year to deliver 2 million sq ft,” said WeWork India CEO Karan Virwani.

The Bengaluru-based co-working major Thursday entered the Chennai market, launching a 130,000 sq ft, 2,000-seater flexible workspace at Olympia Cyberspace in Chennai’s industrial corridor, Guindy. 

Virwani said the capex will be met through a mix of own funding and partnerships, including co-funding by landlords and revenue-sharing deals similar to hotel management contracts.

WeWork India operates over 90,000 seats in 55 locations across eight cities, including Chennai, New Delhi, Gurugram, Noida, and Mumbai. Its offerings include co-working spaces (on-demand and shared workspaces) and office space solutions. The latter, which accounts for 80% of the business, includes private offices and managed office spaces for large enterprises.

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In 2017, WeWork Global, backed by SoftBank, entered the Indian market in partnership with Bengaluru-based Embassy Group, which holds a 73% stake in WeWork India, while the global firm holds the remaining stake. Despite WeWork Global’s bankruptcy in November 2023 due to a post-pandemic demand slump, WeWork India remained unaffected.

In FY23, WeWork India’s revenue grew by 68% to Rs 1,314 crore, and losses narrowed by 77% to Rs 146 crore from Rs 643 crore in FY21. 

Speaking to FE, Virwani attributed the improvement in financials to reduced lease costs (post Covid) and stringent overhead control. “In the last three years, we have not even added a single headcount while we managed to add 25,000 desks in the last two years,” Virwani added.

Media reports suggest WeWork India is expected to have closed FY24 with Rs 1,800 crore in revenue. While Virwani did not confirm this, he projected annual revenue growth at a CAGR of 30-40% and bottom-line growth at 50%.