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WeWork Global, a co-working firm that has faced bankruptcy proceedings in the US, is reportedly in talks to sell its entire 27% stake in WeWork India. This move comes as part of a broader financial restructuring effort, with Bengaluru-based real estate giant Embassy Group also considering diluting its shareholdings to raise capital.
Sources familiar with the matter revealed that WeWork Global is engaging with potential investors to monetize its investments in WeWork India. Meanwhile, Embassy Group, holding a 73% stake in WeWork India, is exploring options to dilute its shareholdings as part of fundraising efforts.
WeWork India, established in 2017, boasts a significant presence with over 8 million square feet across 54 locations in major cities like New Delhi, Bengaluru, Mumbai, and others. Despite challenges, it reported a turnover of ₹1,400 crore during the fiscal year 2022-23.
WeWork Global had injected USD 100 million into WeWork India in June 2021, aiding its operations during the pandemic-induced financial strain. Even if WeWork Global exits, WeWork India plans to retain the ‘WeWork’ brand under a fee arrangement, ensuring continuity for its members and partners.
WeWork Global’s filing for bankruptcy in the US in November last year signaled a broader restructuring to reduce debt and fortify its financial standing. However, this reorganization is exclusive to its US and Canadian operations, leaving international centers unaffected, including WeWork India.
WeWork India’s CEO, Karan Virwani, reassured stakeholders that the US developments would not disrupt Indian operations. He emphasized the independence of WeWork India from WeWork Global, affirming continued services to members, landlords, and partners.
As WeWork Global navigates through financial challenges, the potential divestment of its stake in WeWork India signifies strategic moves to optimize resources and streamline operations. The ongoing discussions and reorganization underscore the resilience of WeWork India amidst broader industry shifts and financial restructurings.
Sources By Agencies
