Co working major WeWork India said on Monday that it has raised Rs 200 crore from investors in the form of equity and debt to grow its business and become profitable this year.
WeWork India, a Bengaluru-based company that provides flexible workspaces to businesses and individuals, sold 10,000 desks with around 7 lakhs of office space in the January-March quarter.
WeWork said it raised Rs 200 crore from investors through a combination of debt and equity.
“The new capital we have raised will help us build on our momentum and truly explore the potential of flexible workspaces in the Indian market,” said Karan Virwani, CEO of WeWork India.
He said the future of flexible workspaces is bright and that the company has the foundation and experience to provide safe and flexible options for businesses and employees of all sizes.
“Although the past year has been difficult for the industry, we have seen a steady increase in demand from members of all sizes. We will remain optimistic and focus on growing flexible workspaces across the country.
“We are ready for long-term sustainable growth and aim for profitability in 2021,” Virwani said.
The company will continue to focus on providing a wide range of flexible offerings to meet the changing needs of its members, he added.
In line with its long-term growth strategy and profitability target, the company reported its most successful sales quarter to date.
With 10,000 desks sold, WeWork continues to strive to support the growth of the flexible workspace industry while meeting long-term revenue and revenue goals.
Despite the slow take-up of 5.53m2 of commercial leased property in the first quarter of 2021, WeWork remained upbeat on sales and net take-over. More than 7 lakh m² of space has been sold (more than 10 percent of the total lease in the US market).
Last year, WeWork reported that companies that now see flexible workspaces as a viable long-term real estate option have seen strong demand.
WeWork’s corporate portfolio has grown 10 percent and is now comprised of 60 percent corporate members.
WeWork Global partnered with the Embassy group in 2017 to enter the Indian market.
In June last year, the company invested US $ 100 million (approximately Rs 750 billion) in WeWork India.
WeWork India has over 5 million square feet of rental space at 35 locations in NCR, Mumbai, Bengaluru, Pune, and Hyderabad.
In the first quarter of 2020, WeWork Global had 828 locations in more than 149 cities and 38 countries around the world.
The Embassy group is a major player in the Indian property market. It also launched the country’s first real estate investment trust (REIT).