Wework India Expects 25% Revenue Growth
Co-working major WeWork India expects its revenue to grow by 25% this calendar year as demand for flexible workspace remains strong despite COVID-19 pandemic, its CEO Karan Virwani said. WeWork India has 34 centres comprising 60,000 desks across six major cities. Virwani expressed confidence that WeWork India would become profitable next year and said the company was adequately funded with the infusion of ?750 crore by WeWork Global in June. The company raised USD 100 million (about ?750 crore) in the form of compulsory convertible debentures (CCDs). Post conversion of these debentures, due next year, WeWork Global will have 20% stake in WeWork India. The fund was raised at a valuation of USD 500 million WeWork plans to acquire clients first and then take on lease Grade-A office space as against the earlier practice of setting up centres first and then reaching out to potential customers. 'Work Near Home' and decentralized workforce model are some of the new trend emerging in the office segment, Virwani said. "Business is doing well. Customers want more flexible workspace. Not only are the new age but traditional businesses also looking for coworking space to reduce their capex." WeWork India has recently leased a large space to a law firm in Bengaluru and is now targeting educational institutions that are exploring to set up their base in coworking centres during this pandemic.
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