Coworking major WeWork India will raise $100 Mn from WeWork Global for sustainable growth of its business. The move reaffirms the commitment of US-based WeWork to the Indian market.
Karan Virwani, CEO, WeWork India, stated, “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."
Virwani further added that the flexible workspace industry in India and around the world is facing its biggest challenge yet. Yet in that, the coworking major sees a new opportunity that suits its members' evolving needs. This is driven by an acceleration towards variable real estate costs, the confidence of safe and well-managed workspaces for their employees, and the growth opportunities that are intrinsic to the WeWork community.
WeWork India said the coronavirus pandemic has accelerated the shift to flexible workspaces, with businesses of all sizes looking to manage cash flows effectively by moving costs to a variable model.
"Space as a service is a huge opportunity for them to free up cash, and WeWork has the right foundations and experience to provide safe, flexible workspaces," it added.
With this in mind, the coworking major is looking to navigate this transformation by prioritizing focused growth in the Indian market over the next 36 months. The company, which entered into a partnership with the Embassy Group in 2017, further said it is already profitable and plays an important role in the global scheme of business for WeWork.
Since entering India, WeWork has been providing full service and innovative workspaces with over 60,000 desks in 34 locations, across six cities. The co-working segment, which grew at a rapid pace in India in the last few years, however, has been badly impacted by the COVID-19 crisis. WeWork India laid off around off 100 employees or 20% of its workforce, joining a number of firms that are cutting costs. Prior to that, in March, globally the firm laid off 250 people, following a turbulent year after pulling its IPO in September, ousting the co-founder and CEO, Adam Neumann, and slashing over almost 2,400 jobs.