On Wednesday, WeWork India – a flexible workspace provider – proudly announced that it had successfully raised 550 crore rupees from BPEA Credit, the leading private credit platform.
This fundraising campaign is perfectly timed with WeWork’s plans to extend its reach into the country.
After launching in India in 2017, WeWork has been experiencing tremendous success. This year alone, the global company reported its first-ever profitable quarter! In only five years’ time, WeWork has rapidly grown from a mere 0.1 million sq ft with 2,200 members to an impressive six million sq ft and 62,000+ members across the globe.
In India, WeWork has a presence in 41 locations and six major cities – Mumbai, Bengaluru, Noida, Gurugram, Hyderabad and Pune. The company is optimistic to reach its goal of `1,300 crore revenue by the year-end which will also result in profitability for it.
WeWork India’s Ebitda for CY2022 revealed a profit of `175 crore, an impressive 250% increase from the preceding year when it reported losses at `120 crore.
Karan Virwani, the Chief Executive Officer of WeWork India, declared-
“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.”
Avendus Capital, the financial arm of the company, was conferred with exclusivity to offer its investment banking services to WeWork India for this particular transaction.
In an official statement, Prateek Jhawar, Avendus Capital’s Head of Infrastructure and Real Assets Investment Banking stated:
“This would be one of the largest transactions in this sector and we are confident that it will open up many such investment opportunities.”
In 2020, amidst the pandemic-induced economic crisis, WeWork India was able to secure a whopping ₹750 crore from its parent company WeWork Global which provided much needed stability for their business.
More than 70% of WeWork India’s members are large-scale enterprises like Khaitan & CO and Honeywell, while startups, freelancers and small to medium sized businesses make up the remaining portion.
As companies keep largely running in a hybrid model, several contenders such as Sequoia-backed Awfis and Smartworks—which are competing with WeWork in India—remain optimistic about the demand, particularly from non-metro cities. As earlier stated by reliable reports.
This cash infusion will surely provide WeWork India with the much-needed capital to enhance its operations and put up a strong fight against its competitors. With this fundraising campaign, WeWork India has set a benchmark for startups in the country.
It will be interesting to see how the company progresses over the next few months and how it manages to cement its name in India’s flexible workspace sector. For now, WeWork India is surely basking in the glory of this major funding success!
Shivendra Tiwari is an Engineer and an MBA in Marketing. He is the Content head at Marketing91 and a thorough Online Marketing enthusiast. Shivendra loves to follow different brands and study their Business and Marketing tactics.