Summary
WeWork India, a major player in the coworking space, is set for a significant ownership change as its US parent company, WeWork Inc., plans to sell its entire 27% stake in the Indian arm. Enam Group’s family office, A91 Partners, and Mithun Sacheti, Founder of Caratlane, are reportedly in talks to acquire the stake for Rs 1,200 crore. The sale, overseen by the Embassy Group, comes amidst impressive financial performance by WeWork India despite challenges faced by its parent company.
WeWork India Plans Stake Sale: Potential Shift in Ownership Dynamics
WeWork India, a prominent player in the coworking space, is poised for a significant ownership change as its US parent company, WeWork Inc., prepares to sell its entire 27% stake in the Indian arm. This move comes as Enam Group’s family office, A91 Partners, and Mithun Sacheti, Founder of Caratlane, engage in talks to acquire the stake for a staggering Rs 1,200 crore.
Supervised by Embassy Group
The transaction, primarily involving the transfer of existing shares, is being supervised by the Embassy Group, which currently holds a majority 73% stake in WeWork India. While awaiting clearance from the Competition Commission of India (CCI), both parties involved in the potential acquisition have remained tight-lipped about the details.
Resilience Amidst Parent Company’s Challenges
Despite the challenges faced by WeWork Inc., including substantial losses reported in the first half of 2023, WeWork India has showcased robust financial performance. With revenue soaring to Rs 1,400 crore in FY23 and earnings reaching Rs 250 crore, the Indian unit has demonstrated resilience amidst the financial struggles of its parent company.
Expanding Footprint
WeWork India embarked on its journey in 2017 through a joint venture with real estate giant Embassy Group. Since then, it has been expanding its presence across key cities like Bengaluru, Hyderabad, and Delhi, securing substantial office spaces to cater to the burgeoning demand for coworking facilities in India.
Continued Operations and Innovation
Despite uncertainties surrounding WeWork Inc.’s financial standing, WeWork India remains committed to its operations. CEO Karan Virwani has affirmed that the Indian arm continues to operate smoothly, underscoring its dedication to providing innovative workspace solutions and maintaining its leadership position in the coworking industry.
As the ownership landscape of WeWork India undergoes potential transformation, stakeholders in the coworking ecosystem are closely watching how this development will shape the future trajectory of the Indian coworking giant.
