WeWork India is expected to receive $100 million investment from WeWork Global to help its Indian arm grow in the market and achieve profitability. WeWork India has decided to use the funds for focused growth in India market over next 36 months. The co-working firm is already profitable at center level and wishes to break even at company level by June 2020.
Karan Virwani, CEO, WeWork India said in a statement, “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. We have enough capital for long term growth and increase the profitability of the business.”
A few months ago, reports stated that the company plans to raise $200 million to grow its operations in India. WeWork India is an important market for the parent company which justifies the investment. A few days back company reported that they planned to increase the number of desks to 90K by end of this year but now their focus has shifted to profitability and not desks.
The pandemic crisis has majorly brought behavior shift in the world forcing companies to come up with innovative ways for their business to adapt with the shift. WeWork too has been evolving its products based on the needs of its customer base. As the economy become more unstable, companies are looking for feasible option which also includes flexible workspaces. This model will support WeWork India’s strategies which focuses on member experience and financial performance at the building level.
Sandeep Mathrani, CEO, WeWork, stated, “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.”
Mathrani was appointed to turn around the business globally by focusing on office rentals earlier this year. Presently, WeWork has reach across 828 locations in over 149 cities and 38 countries with more than 662,000 memberships.