WeWork India, a flexible workspace provider, on Wednesday said it has raised `550 crore from BPEA Credit, a private credit platform.
The fundraise comes at a time when WeWork has stressed on its expansion plans in the country. Starting India operations in 2017, WeWork, the global company that reported its first-ever profitable quarter earlier this year, said it has grown from 0.1 million sq ft and 2,200 members to over six million sq ft with more than 62,000 members over the last five years.
In India, the company has presence in 41 locations and six cities – Bengaluru, Mumbai, Gurugram, Noida, Hyderabad and Pune. WeWork India said it will turn profitable after locking a revenue of `1,300 crore this year end. WeWork India’s Ebitda (earnings before interest, taxes, depreciation and amortisation) came in at a profit of `175 crore CY2022, a 250% jump from a loss of `120 crore that the unit reported in CY21.
“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,” Karan Virwani, CEO, WeWork India, said.
Avendus Capital, the company’s investment banking arm, was the exclusive financial advisor to WeWork India on the transaction. “This would be one of the largest transactions in this sector and we are confident that it will open up many such investment opportunities,” said Prateek Jhawar, head, infrastructure and real assets investment banking, Avendus Capital, said.
In 2020, a year when Covid was fast spreading, WeWork India raised `750 crore from WeWork Global to help stabilise the business from pandemic-induced shocks.
WeWork India’s member portfolio comprises 70% of enterprises such as Khaitan & CO and Honeywell, while startups, freelancers and SMEs account for the remaining. As companies continue to largely operate in a hybrid model, several players like Sequoia-backed Awfis and Smartworks, which compete with WeWork in India, continue to be bullish on the demand, especially from non-metro cities, as reported earlier.