WeWork India raises Rs 200 crore, aims for profitability in 2021

Co-working major WeWork India on Monday said it has raised Rs 200 crore from investors, through a mix of debt and equity.

The company said that following the challenging period for the industry due to the lockdown last year, it has bounced back and pivoted to adapt favourably through new flexible product offerings.

WeWork India said that it is aiming for profitability in 2021.

"The new capital we have raised will help us in continuing our upwards momentum and truly explore the potential of flexible workspaces in the Indian market," Karan Virwani, CEO, WeWork India, said in a statement.

Announcing its "most successful sales quarter yet," WeWork India said it sold 10,000 desks during the January-March quarter.

Despite the slow absorption for commercial real estate with 5.53 million sq ft leased in Q1 2021, WeWork remained bullish with driving sales and net absorption, with more than 7 lakh sq ft of area being sold (over 10 per cent of the total leasing in the  market).

"While last year was challenging for the industry, we have seen a steady uptick in demand from members of all sizes, and we will continue to remain bullish and focus on the growth of flexible workspaces in the country," Virwani said.

"We are poised for sustainable long-term growth and are aiming for profitability in 2021. Our focus remains on providing a wide range of flexible offerings to meet our members' evolving needs."

WeWork said over the last year it has also seen a strong demand from enterprises, who are now looking at flexible workspaces as a viable long-term real estate option.

This is showcased by WeWork's enterprise portfolio seeing a 10 per cent jump to now constitute 60 per cent enterprise members, as well as facilitating the opening of its new workspace: Embassy Manyata NXT, in Bengaluru.

WeWork last month said it entered into an agreement with Indian American Vivek Ranadive-led blank-check firm BowX Acquisition Corp., providing for a business combination that will result in the co-sharing workspace company becoming a publicly listed company.

The transaction values WeWork at an initial enterprise value of approximately $9 billion, WeWork said.