WeWork to sell 27% stake in India unit via Rs 1,200 crore secondary deal

US office-sharing company WeWork Inc. is set to exit the Indian operations by selling its entire 27% stake in the local unit through a secondary transaction, said multiple people in the know.

The estimated Rs 1,200 crore deal will also see Bengaluru-based property developer Embassy group pare its holding from 73% to 60%, said the people cited above.

The combined stakes of WeWork Inc. and Embassy group totalling 40% in the Indian unit will be acquired by new investors comprising the Enam group family office, investment fund A91 Partners, and CaratLane founder Mithun Sacheti, among others, the people said.


“The deal involves the sale of WeWork Inc.'s shareholding in the Indian business which is being run by the Embassy group. While most of the Rs 1,200 crore is through secondary sale of shares, there may be a primary component later on...For now, the company is awaiting a clearance from the Competition Commission of India (CCI),” said one of the persons cited above.

Karan Virwani, CEO, WeWork India, declined to comment. Enam group’s Akash Bhanshali, CaratLane’s Sacheti, and a spokesperson for A91 Partners did not respond to ET’s requests for comment.

Adam Nuemann and Miguel McKelvey cofounded WeWork Inc. which filed for Chapter 11 bankruptcy last November. In sharp contrast to the collapse of its US operations, the Indian business of WeWork reported revenue of Rs 1,300 crore in FY23, a growth of about 68%. Net losses narrowed 80% to Rs 146 crore during the year.

WeWork Inc’s India exit comes at a time when coworking startups are seeing a post-pandemic revival in demand. Peak XV Partners-backed Awfis has filed draft IPO papers for a public issue later this year. Indiqube, CoWorks, 91Springboard, Bhive are among other coworking platforms in India.

In 2017, the Embassy group had set up a joint venture with WeWork Inc. for the global co-working company to enter India. The company is aiming to clock revenue of Rs 1,800 crore in FY24 and may add up to 2 million sq ft of additional space in a year’s time. Currently, it has 8 million sq ft of office space across major cities.

For the first six months of FY24, it clocked a revenue of Rs 831 crore, up 40% on-year. It has yet to file its audited FY24 financials with the Registrar of Companies).

The company has over 70,000 paying members across the country with over 90,000 desks. As much as 80% of its clients are large enterprises while it also works with startups and other small businesses.