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 Set for Ownership Shift Amidst Stake Sale Talks
WeWork India, a prominent player in the coworking space, is poised for a significant ownership change as its US parent company, WeWork Inc., plans to offload its entire 27% stake in the Indian arm. Talks are underway for Enam Group’s family office, investment fund A91 Partners, and Mithun Sacheti, Founder of Caratlane, to acquire this stake for a staggering Rs 1,200 crore.
Embassy Group Supervises Stake Sale
The sale, primarily involving the transfer of existing shares, is being overseen by the Embassy Group, which currently holds a majority 73% stake in WeWork India. While awaiting clearance from the Competition Commission of India (CCI), WeWork India has opted not to comment on the potential deal.
Financial Resilience Amidst Challenges
Despite WeWork Inc.’s financial woes, including substantial losses in the first half of 2023, WeWork India has showcased impressive financial performance. With revenue reaching Rs 1,400 crore in FY23 and earnings hitting Rs 250 crore, the Indian unit has demonstrated resilience amidst its parent company’s struggles.
Expansion and Market Presence
WeWork India’s journey began in 2017 through a joint venture with real estate firm Embassy Group. Since then, it has been expanding its presence across major Indian cities like Bengaluru, Hyderabad, and Delhi, securing significant office spaces to meet the rising demand for coworking facilities.
Staying Focused Amidst Uncertainties
Despite uncertainties surrounding WeWork Inc.’s financial health, WeWork India remains steadfast in its operations. CEO Karan Virwani has emphasized that the Indian unit continues to function smoothly, underscoring its commitment to providing innovative workspace solutions and maintaining its leadership position in the coworking industry.
As talks progress and ownership shifts loom, WeWork India stands poised to navigate the evolving landscape with resilience and determination, ensuring continued excellence in delivering coworking solutions to its clients across India.
