Co-working major WeWork India said it has raised Rs 550 crore from funds managed by BPEA Credit for future growth and acquisition opportunities as it seeks to tap the rising demand for flexible spaces.
In 2017, WeWork Global partnered with Bengaluru-based real estate firm Embassy Group to enter the Indian market.
At present, WeWork India has a portfolio of around 70,000 desks spread over 6 million square feet area in 41 centres across six cities—Bengaluru, Mumbai, Gurugram, Noida, Hyderabad, and Pune.
The amount will be used for future growth and potential consolidation opportunities, WeWork India said.
In 2020, WeWork India raised Rs 750 crore from WeWork Global, which the company said played an instrumental role in stabilising the business during the pandemic. WeWork Global has around 27% stake in WeWork India.
“Flexibility is paramount in today’s workforce and the investment by BPEA Credit stands testament to the massive growth opportunity for flex workspaces in India,” said Karan Virwani, CEO, WeWork India.
He said the investment also validates WeWork India’s strong fundamentals and healthy business model.
“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’s client portfolio comprises 70% of enterprises while 30% includes startups, freelancers, and SMEs.
Earlier this month, in an interview with PTI, Virwani had said, “Our revenue for this calendar year is estimated to grow to about Rs 1,300 crore. The revenue was Rs 760 crore in 2021.”
WeWork India is not only EBITDA (earnings before interest, taxes, depreciation, and amortisation) positive but also generating free cash flow to expand business and sustain the growth momentum, he had said.
The EBITDA has jumped from a loss of Rs 120 crore in 2021 to a profit of Rs 175 crore in 2022 calendar year.
On the expansion, Virwani had said the portfolio would reach 6.5 million square feet by March and 8 million square feet by December 2023.