Softbank-backed coworking space company, WeWork recently announced that it will inject $100mn in its India unit WeWork India to help boost growth. The two companies are trying to take advantage of the long-term opportunities that India offers as a flexible workspace market.
“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,” said Karan Virwani, CEO, WeWork India.
The company had earlier raised around ₹500Cr in debt and announced plans to raise another $200mn through a combination of equity and structured debt to fund its growth following rising demand for shared workspaces in the country.
The company believes that the future of work will be centered around flexible workspaces, a shift accelerated due to the pandemic. The company said it is looking to move ahead with this transformation by prioritising focused growth in the Indian market over the next 36 months.
WeWork entered the Indian market after forming a partnership with real estate developer Embassy Group in 2017. Embassy Group holds 100 percent rights over WeWork India, which is an independent entity with the right to execute WeCo’s business in the country. WeWork India also said that if it could not raise money, Embassy Group may infuse some capital into the co-working business.
“WeWork is excited to be providing financial assistance to transform the workspace environment in India. WeWork India’s financial performance has shown consistent growth, and with the fundamentals in place at a building level, backed by the expertise of the Embassy Group, we believe WeWork India has the ability to be our growth vehicle and provide our members an exceptional experience,” said Sandeep Mathrani, Chief Executive, WeWork Global.
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