Highlights:
- WeWork India plans to sell the entire 27% stake held by its US parent company, WeWork Inc., through a secondary sale.
- Enam Group’s family office, A91 Partners, and Mithun Sacheti, Founder of Caratlane, are in talks to acquire the stake for Rs 1,200 crore.
- The sale is primarily comprised of existing shares, with potential for a primary component, and is being overseen by the Embassy Group, which holds a 73% stake in WeWork India.
WeWork India, a major player in the coworking space, is set to undergo a significant ownership change as SoftBank-backed parent company WeWork Inc. plans to sell its entire 27% stake in the Indian arm. According to reports, Enam Group’s family office, investment fund A91 Partners, and Mithun Sacheti, Founder of Caratlane, are in talks to acquire this stake for a whopping Rs 1,200 crore.
The sale, which primarily involves the transfer of existing shares, is under the supervision of the Embassy Group, which currently holds a 73% stake in WeWork India. While the deal awaits clearance from the Competition Commission of India (CCI), WeWork India has refrained from commenting on the matter.
Despite challenges faced by WeWork Inc., including significant losses amounting to $696 million in the first half of 2023, WeWork India has reported impressive financial figures. With revenue touching Rs 1,400 crore in FY23 and earnings reaching Rs 250 crore, the Indian unit has shown resilience amidst the parent company’s financial struggles.
WeWork India’s journey began in 2017 when it entered the Indian market through a joint venture with real estate firm Embassy Group. Since then, it has been expanding its footprint across major cities like Bengaluru, Hyderabad, and Delhi, securing substantial office spaces to accommodate the growing demand for coworking facilities.
Despite uncertainties surrounding WeWork Inc.’s financial health, WeWork India remains steadfast in its operations, with CEO Karan Virwani emphasizing that the Indian unit continues to function smoothly. As the ownership landscape evolves, the Indian arm of WeWork remains focused on providing innovative workspace solutions and maintaining its position as a leader in the coworking industry.