WeWork India turns profitable, eyes 33pc growth
The Indian subsidiary of global coworking gianthas announced that they have become profitable for the first in the January-March quarter of this year. The company entered India in mid-2017.
CEO Karan Virwani said that the company had booked Rs. 250 crore in revenue during Q1, and had a profit of Rs. 25 crores at EBITDA (earnings before interest, taxes, depreciation, and amortisation) level.
"Our revenue was Rs 250 crore during the first quarter of this calendar year. We expect Rs 1,000 crore revenue in the 2022 calendar year," said Virwani to news agency PTI. Profit at EBITDA level for the year is estimated to be Rs. 100 crore.
Moreover, Virwani has predicted that WeWork will grow by 33 percent over the remaining months in 2022, on the back of strong demand for flexible workspaces. Virwani also attributed increased floor space and upselling of existing customers as strong factors for growth.
The company currently has 50,000 active customers across 36 locations in six major cities including Bangalore, Delhi-NCR and Mumbai. The average desk size for managed offices is at 1,000-1,500 desks compared to 600-700 desks pre-Covid.
Virwani highlighted that 30 percent of WeWork India's growth came from existing customers. In an example, he shared that social commerce unicorn Meesho grew from 4 desks in June 2020 to 700 desks in 2022.
WeWork India's mission is to make the company's coworking spaces a "one-stop shop" for a company's workspace requirements. Global parents WeWork infused a $100 million investment into its Indian arm in June 2021 to aid this goal.