Softbank-backed WeWork plans to sell 27% stake in Indian arm for Rs 1,200 Cr: Report
Enam Group’s family office, along with investment fund A91 Partners and Mithun Sacheti (Founder of Caratlane), are in the process of acquiring WeWork Inc's stake worth Rs 1,200 crore.
Coworking major India is currently in the process of offloading the entire 27% stake held by its US parent through founder Adam Neumann via a secondary sale.
Enam Group’s family office, along with investment fund and Mithun Sacheti (Founder of ), are in the process of acquiring New York-headquartered WeWork Inc's stake worth Rs 1,200 crore, according to a report by The Economic Times.
As per sources cited in the report, the sale largely consists of selling existing shares but there is a potential for a primary component.
The share transfer is being overseen by the , which holds a 73% stake in WeWork India. Presently, the company is awaiting clearance from the Competition Commission of India (CCI).
WeWork India has declined to comment on the report.
Earlier, Karan Virwani, CEO of WeWork India, had said that the operations of the Indian unit remained unaffected despite WeWork Inc raising "substantial doubt" on its ability to stay in business.
The company clocked Rs 1,400 crore in revenue in FY23 and achieved "earnings" of Rs 250 crore during the fiscal year.
However, the SoftBank-backed parent disclosed a net loss of $696 million in the first half of 2023. Although the losses decreased from the $1.4 billion reported in the same period a year ago, its long-term debt amounted to $2.9 billion as of June 30, 2023.
In 2017, real estate firm Embassy Group had set up a joint venture with WeWork for the global coworking company to enter the Indian market.
In June last year, WeWork India finalised a lease for 2.2 lakh square feet of office space in Bengaluru to establish three new centres with a combined capacity of 3,600 desks. It also procured over one lakh square feet of office space in Hyderabad, providing space for 1,500 desks, along with making its debut in Delhi, securing 54,000 sq ft of office space.