WeWork commits $100 million investment into India operations
The co-working unicorn claimed that it's profitable in India and expressed confidence in navigating through the challenges posed by the coronavirus pandemic.
Co-working startup WeWork has reaffirmed its commitment to the India market and has set aside $100 million as investment into the country.
A press release from WeWork said, “This financing by WeWork Global reiterates the company’s focus on India as a strategic market.”
WeWork has been faced with several deep challenges like in change in management and lawsuit with its largest investor SoftBank. However, this startup which once enjoyed a valuation of $47 billion and now dropping to $2.7 billion expressed confidence of navigating through the challenges posed by coronavirus pandemic.
According to WeWork, the pandemic has accelerated the shift to flexible workspaces, with businesses of all sizes looking to manage cash-flows effectively by moving costs to a variable model. Space as a service is a huge opportunity for them to free up cash, and WeWork has the right foundations and experience to provide safe, flexible workspaces, it said.
WeWork believes it will be able to navigate this transformation by prioritising focused growth in the Indian market over the next 36 months. It claimed that WeWork India is already profitable.
The WeWork India business will be focusing on showcasing the strengths through their extensive network of partners and vendors in the market, it said.
Karan Virwani, CEO, WeWork India, said, “The fresh round of capital from our long-term partners at WeWork global represents a vote of confidence in our strategy and will help us serve our community better.”
According to WeWork, the potential of India as a flexible workspace market and the additional capital addresses the long-term opportunity. It said the $100 million fund is a reinforcement of the potential in this category, an affirmation of India’s continued prospects in attracting global capital, and highlights belief in the fundamentals of the Indian economy.
Sandeep Mathrani, CEO of WeWork, said, “WeWork is excited to be providing financial assistance to transform the workspace environment in India. We believe the WeWork India business has the ability to be our growth vehicle and provide our members an exceptional experience.”
WeWork entered into a partnership with Embassy Group — India’s leading integrated real estate developer in 2017 and started operations in the Indian market. Embassy Group currently holds 100 percent rights over WeWork India, which is an independent entity with the right to execute WeCo’s business in the country.
Edited by Kanishk Singh