WeWork India has raised $100 million in financing from WeWork Global after laying off 20 percent of staff only last month. WeWork entered into a partnership with Embassy Group in 2017 and started operations in the Indian market. Embassy Group currently holds 100 percent rights in WeWork India.
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Embassy Group was in talks till last year to sell a majority stake in the co-working business to its American partner. However, those talks took a backseat with the unraveling of WeWork following its failed IPO attempt and the removal of CEO Adam Neumann. The group had said late last year that it was looking to raise $200 million to put into the co-working business.
Karan Virwani, the CEO of WeWork India, said, “The flexible workspace industry in India and around the world is facing its biggest challenge yet. In that, we see a new opportunity that suits our 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. 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.”
"This financing will support WeWork India’s long-term strategy, focused on exceptional member experience and strong financial performance at the building level," he added.
Sandeep Mathrani, CEO of WeWork, said, “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 the WeWork India business has the ability to be our growth vehicle and provide our members an exceptional experience.”
WeWork India had last month laid off nearly 100 employees, which is 20 percent of its 500-strong workforce as the co-working company was hit by the nearly two-month-long lockdown that saw all its office spaces being shut.
The company was also looking to put expansion plans on hold and said it will only work with the spaces in 2021 that it has already signed and those already in the pipeline.
WeWork India currently has 34 operational spaces across the country.
First Published: Jun 5, 2020 6:21 PM IST