WeWork India has announced that it will receive $100 million financing from WeWork Global to help boost sustainable growth. This comes at a time when the co-working space has been hit hard as companies continue to work from home due to the coronavirus pandemic and the lockdown.
WeWork India said in a statement the 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.
This would mean that co-working spaces will now have to re-imagine their business models to suit the new and evolving needs of companies to provide flexible workspaces, keeping safety in mind.
WeWork India says that it is looking to navigate this transformation by prioritising focused growth in the Indian market over the next 36 months.
This financing, therefore, will be used to support WeWork Indiaâ€™s long-term strategy, which it says is focused on enhancing member experience and having strong financial performance at the building level.
WeWork India claims to already be profitable, playing important role in the global scheme of business for WeWork.
â€śThe 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 membersâ€™ 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,â€ť Karan Virwani, CEO, WeWork India, said in a statement.
WeWork established its presence in India through a partnership with Embassy Group in 2017. Embassy Group currently holds 100% rights over WeWork India, which is an independent entity with the right to execute WeCoâ€™s business in the country. It currently over 60,000 desks in 34 locations, across 6 cities.
Sandeep Mathrani, CEO of WeWork, said, â€śWeWork is excited to be providing financial assistance to transform the workspace environment in India. WeWork Indiaâ€™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.â€ť