WeWork raises Rs 200 cr from investors, through a mix of debt and equity
With 10,000 desks & 7 lakh sq ft sold, WeWork remains committed to supporting the growth of the flexible workspace
In line with its long-term growth strategy and aim for profitability, WeWork India that provides collaborative workplace solutions - today announced its most successful sales quarter yet. With 10,000 desks sold, WeWork remains committed to supporting the growth of the flexible workspace industry while also meeting long term sales and revenue targets. The growing industry will help businesses in effectively shifting their workplace strategy to hybrid workspaces. This will majorly be facilitated by safe & hygienic workspaces and easily managed cash-flows.
Despite the slow absorption for commercial real estate with 5.53 million sq ft leased in Q1 2021, WeWork remained bullish with driving sales and net absorption, with more than 7 lakh sq ft of area being sold (over 10% of the total leasing in the market). This highlights the growing popularity of flexible workspace solutions in the post-pandemic world. To further cement its long term growth, WeWork also announced that it has raised INR 200 crores from investors, through a mix of debt and equity. With people tired of working from home as a result of the pandemic, WeWork has launched diverse product offerings such as WeWork On Demand and WeWork All Access. These present dynamic workspace solutions to companies' workforces while offering them flexibility, accessibility and a stronger work-life balance. It also eases long term decisions by eliminating fixed expenses and facilitating effective cash flow management. These products have seen significant traction with the On Demand sales peaking at a month-on-month increase of 39% in the daily passes being sold and 45-50% percentage of users returning for the offering.
This new raised capital reiterates that WeWork will continue to drive belief from investors in the flexible workspace industry in India. Following the challenging period for the industry due the lockdown last year, WeWork has bounced back and pivoted to adapt favorably through new flexible product offerings. Over the last year, WeWork has also seen a strong demand from enterprises, who are now looking at flexible workspaces as a viable long-term real estate option. This is showcased by WeWork’s enterprise portfolio seeing a 10% jump to now constitute 60% enterprise members, as well as facilitating the opening of its new workspace: Embassy Manyata NXT, in Bengaluru.
Karan Virwani, CEO, WeWork India, said, “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. Our focus remains on providing a wide range of flexible offerings to meet our members’ evolving needs. 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.”
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