WeWork India turns a profit and eyes expansion

In 2017, WeWork India entered into a partnership with Embassy Group and started its operation in India. After four years of operations in the country, WeWork India has turned profitable. In the year 2021, WeWork India leased 1.7million sq ft as a flexible workplace for their employees. In the year 2022, they are looking forward to adding a million square feet of flexible workspace.

The expansion will be asset-light, mainly through a revenue-sharing model and operator model. With Rs.800 crore topline, WeWork India has turned profitable in November. In 2021, the company mainly focused on profitability and operations and it achieved its objectives; the company will return to growth mode in the year 2022. WeWork will focus on the top six cities in the year 2022.

WeWork India raised approximately Rs 500 million in debt in 2019. WeWork recorded its highest ever quarterly leasing with 10000 desks, totalling 7lakh sq ft in January-March 2021. Despite the business recovery from January to March, Covid's second wave affected demand and the pace of people returning to traditional coworking offices. However, the company recovered from the second wave of Covid-19 faster and stronger.

The companies which left WeWork India during the pandemic are returning however the list of the companies which left and would be returning is not disclosed. The flexible workplace segment is going to become an integral part of commercial real estate.

Thank you.

Regards,

Dwiti Joshi (Section R),

Kautilya,

IBS Mumbai.