NEW DELHI: WeWork India on Friday said that it has received USD 100 million (roughly Rs 750 crore) funding from the parent company, WeWork for sustainable growth and focus on India as a strategic market. The co-working major said that COVID-19 pandemic has underlined the need for adoption of flexible workspaces for cost reduction purposes.
WeWork said that in line with the future workspaces model, the company will undergo a transformation over the next 36 months and India is a huge market for the American startup.
WeWork India is already profitable and plays an important role in the global scheme of business for WeWork. The WeWork India business will be focussing on showcasing their strengths through their extensive network of partners and vendors in the market, the co-working firm said in a statement.
“The 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 members’ 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,” said Karan Virwani, CEO, WeWork India.
In India, WeWork has tied up with real estate giant, Embassy Group which holds 100 per cent rights over WeWork India and now has 60,000 desks in 34 locations, across 6 cities where businesses of all sizes can choose from a range of unique product offerings.
“WeWork is excited to be providing financial assistance to transform the workspace environment in India. WeWork India’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 with an exceptional experience,” said Sandeep Mathrani, CEO of WeWork.