Coworking major: WeWork India is presently in the process of selling through a secondary sale the full 27% of its shares that its US parent company, founded by Adam Neumann, owns. According to a report by The Economic Times, the family office of Enam Group, investment fund A91 Partners, and Caratlane founder Mithun Sacheti are in the midst of purchasing a Rs 1,200 crore stake in New York-based WeWork Inc.
Sale Details: The sale mostly comprises of selling the current shares, but there may be a major component as well, according to sources mentioned in the paper. With a 73% ownership in WeWork India, the Embassy Group is in charge of overseeing the share transfer. The company is currently pending approval from the Indian Competition Commission (CCI). WeWork India has not responded to inquiries about the article.
Prior Verdict: WeWork Inc. raised “substantial doubt” about the Indian unit’s capacity to continue operating, however Karan Virwani, CEO of WeWork India, had stated that activities continued undisturbed. In FY23, the company recorded revenue of Rs 1,400 crore and “earnings” of Rs 250 crore for the fiscal year.
Financials of Parent Company: Nevertheless, the parent company, which is supported by SoftBank, revealed a $696 million net loss for the first half of 2023. As of June 30, 2023, its long-term debt was at $2.9 billion, despite the fact that the losses had dropped from the $1.4 billion recorded during the same time the previous year.
Partnership and Growth: In order for the international coworking startup WeWork to penetrate the Indian market, real estate developer Embassy Group formed a partnership with the latter in 2017. WeWork India signed a deal for 2.2 lakh square feet of office space in Bengaluru in June of last year with the intention of opening three new locations with a total capacity of 3,600 desks. It also made its debut in Delhi, obtaining 54,000 sq ft of office space, and acquired over one lakh square feet of office space in Hyderabad, accommodating 1,500 desks.
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