WeWork India is showing a promising divergence from its parent company’s woes in the US. The Indian branch — mainly owned by the Embassy property group — is pushing for a funding round that could lead to WeWork Global selling its stake.
What Happened? Per a report by The Arc, WeWork’s share price has plunged 60% in three weeks due to sudden CEO and CFO resignations, but its India unit has a different story to share.
Importantly, a successful funding round will push its worth past the $400 million (₹3,307 crore) market cap of US-listed WeWork, claims the report.
A source familiar with the situation stated, “WeWork Global wants to unlock some capital and valuation from the Indian business, which has done well.” However, it’s unclear how the recent departure of WeWork Global CEO Sandeep Mathrani might impact the deal.
WeWork India has experienced consistent growth since its launch in 2017, operating co-working spaces in 40 locations. CEO Karan Virwani plans to add 20,000 seats to the existing 75,000. With monthly revenues of approximately ₹135 crore, the company is projected to generate nearly ₹375 crore-₹400 crore in EBITDA this year.
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An investment banker speaking to the publication said: “They (WeWork India) are trying to raise funds at a valuation of ₹5,000-6,000 crore.” However, WeWork Global’s enterprise valuation surpasses it due to its billions of dollars in lease liabilities.
WeWork India is among the top performers in occupancy rate, standing at 81%, and it holds the highest building margin among WeWork’s global operations at 45%. Despite competition from other players, WeWork India continues to expand by focusing on corporate clients and small businesses.
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