Coworking space player WeWork India on Monday said it has raised Rs 200 crore in debt and equity from investors, also announcing that its flexible workspace products helped the company achieve its best quarter in terms of sales. The company did not disclose, from which investors it has raised capital from.
The company announced that WeWork India sold more than 7 lakh sq ft area during the March quarter. According to the company, strong demand from enterprises drove the growth, with WeWork’s enterprise portfolio seeing a 10 percent jump to now constitute 60 percent enterprise members. The demand also facilitated the opening of its new workspace in Bengaluru.
WeWork India had in June last year raised a $100 million funding from WeWork's parent company, which valued the Indian entity at $500 million.
With the funding, Sandeep Mathrani, Global CEO of WeWork, had also joined WeWork India's board.
WeWork India head Karan Virwani had told CNBC TV 18 last year that the We Company was set to take an equity stake of 20 percent in WeWork India by the end of 2021.
Before that, the Embassy Group owned 93 percent of WeWork India, while The We Company owned 7 percent stake.
WeWork last month announced that it was looking to launch an IPO through a merger with a special purpose acquisition company (SPAC) BowX Acquisition Corp.
In a statement on Monday on the new announcement, Virwani said the company was also set to gain profitability in 2021.
“The future of flexible workspaces is looking brighter than ever and WeWork has the right foundations and experience to provide safe, flexible options for companies and workforce of all sizes. While last year was challenging for the industry, we have seen a steady uptick in demand from members of all sizes, and we will continue to remain bullish and focus on the growth of flexible workspaces in the country. We are poised for sustainable long-term growth and are aiming for profitability in 2021," Karan Virwani, CEO, WeWork India, said
"The new capital we have raised will help us in continuing our upwards momentum and truly explore the potential of flexible workspaces in the Indian market.”
WeWork entered the Indian market in 2017, and has significantly expanded with over 5-plus million sq ft of space leased in 35 locations, across NCR, Mumbai, Bengaluru, Pune, and Hyderabad. As of Q1, 2020, WeWork has 828 locations in over 149 cities and 38 countries.