WeWork India raises Rs 700 cr from its parent
New Delhi: Amid reports of bleak outlook for co-working industry, WeWork India has raised Rs 700 crore from its parent WeWork Global.
"This 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 of WeWork India in a statement.
However, he accepted that co-working industry in India and globally is facing its biggest challenge right now.
The present corona pandemic has also created a new set of opportunities for the flexible office players. It has accelerated the move to flexible offices for large and medium companies as they look to manage cash flows by shifting costs to a variable model.
WeWork India is actively looking at ways to navigate this shift among companies by prioritising focused growth in the Indian market in the coming three years. WeWork India claimed it is already profitable. The Indian arm plays a major role in the international business for US-based WeWork.
"WeWork India's performance has shown consistent growth. We believe the WeWork India business has the ability to be our growth vehicle and provide our members an exceptional experience," said Sandeep Mathrani, CEO of WeWork.
US-based WeWork got into a partnership with India’s Embassy Group in 2017. The Indian partner holds 100 percent rights of WeWork India.