Co-working major WeWork India on Monday said it has raised Rs 550 crore from funds managed by BPEA Credit. The amount will be used for future growth and potential consolidation opportunities.
WeWork India has a portfolio of around 70,000 desks spread over 6 million square feet area in 41 centers across Bengaluru, Mumbai, Gurugram, Noida, Hyderabad, and Pune.
“Flexibility is paramount in today’s workforce and the investment by BPEA Credit stands testament to the massive growth opportunity for flex workspaces in India,” said Karan Virwani, CEO, of WeWork India.
He said the investment also validates WeWork India’s strong fundamentals and healthy business model.
“We are laser-focused on fuelling growth opportunities and fortifying our position as the leading flexible workspace brand with customizable and innovative solutions for all businesses,” Virwani said.
The firm said it reported a revenue of Rs 1,300 crore in the CY22, compared to a revenue of Rs 760 crore the previous year. It reported a positive Ebitda (earnings before interest, taxes, depreciation, and amortization) during the year of Rs 175 crore during the year, compared to a loss of Rs 175 crore in the year before.
Avendus Capital was the financial adviser to WeWork India on the transaction.
“This fundraising by WeWork India strongly underscores the increasing confidence of the investment community in the growth prospects of India’s flex workspace sector. This would be one of the largest transactions in this sector and we are confident that it will open up many such investment opportunities,” said Prateek Jhawar, executive director and head, of infrastructure & real assets investment banking, at Avendus Capital.
WeWork India currently has over 62,000 members and covers 6 million square feet of space. Its portfolio comprises 70% of enterprises such as 3M, Khaitan & CO, Honeywell, Dyson, and Kia. About 30% includes startups, freelancers, and small and medium enterprises.