WeWork India has raised Rs 550 crore (approximately $66.5 million) to reshape the future of workspace in the country.
A part of the global co-working space firm WeWork, the India branch is operated by domestic real estate conglomerate Embassy Group. The office space startup enables workers to perform their jobs comfortably in a supportive community. WeWork does not only offer shared physical space but also virtual space for business entities that plan to branch out.
The startup began serving Indian workers in 2017. Starting with only 2,200 members, WeWork India has grown its business to more than 62,000 across six Indian cities — Mumbai, Bengaluru, Gurugram, Hyderabad, Noida and Pune. There are 41 WeWork locations in these cities.
About 70 percent of WeWork India’s clients are small and big enterprises. Its notable corporate clients include KIA, Dyson and Khaitan & Co. Earlier this year, WeWork India reported its first-ever profitable quarter. CEO Karan Virwani said the Indian workforce’s wish for working flexibility provided a growth opportunity for the company.
BPEA Credit led WeWork India’s latest funding round, with Avendus Capital Private Limited as the investment banking partner for the startup. Virwani said BPEA’s participation in the financing provides validation of his company’s “strong fundamentals” and sound business model.
According to Virwani, they will use the fund to strengthen WeWork’s local presence. It aims to be a leading brand for co-working space in India.
“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,” Virwani said.
WeWork India last raised Rs 750 crore (around $90.48 million) from its parent company to survive amid the COVID-19 crisis. With that fund, WeWork India could work through its $14.47 million loss in 2021 to achieve a $21.13 million profit by the end of this year.
The startup recently invested in Zoapi, a conferencing and collaboration platform based in Bengaluru. Zoapi served companies, co-working spaces and education centers by combining multiple virtual rooms and innovative solutions to aid collaborative tasks.
