No impact on Indian biz amid WeWork Global's bankruptcy reports: Official

Amid reports that US-based WeWork Global plans to file for bankruptcy soon, coworking major WeWork India on Wednesday asserted this will have no impact on its business, saying the Indian business is backed by realty firm Embassy Group and has achieved consistent growth.

In WeWork India, Embassy Group holds a 73 per cent stake, while WeWork Global has a 27 per cent shareholding. WeWork Global, which is a leading provider of flexible workspace, in June 2021 invested USD 100 million in WeWork India.

There are reports that Softbank-backed WeWork Global is planning to file for bankruptcy. A few months ago, US-based WeWork Global made a statement that "substantial doubt" exists about the company's ability to continue as a going concern.

 

In a statement on Wednesday, WeWork India CEO Karan Virwani said, "WeWork India is a separate entity from WeWork Global. The recent news around the potential bankruptcy and Chapter 11 filing in the US will have no impact on the members and stakeholders in India.

Any development globally has no bearing on the operations of the business, he asserted.

"In India, we will continue to operate and serve our members, landlords, and partners as usual," Virwani said.

WeWork India is backed by Embassy Group which holds the majority stake and control to run and operate the business in India.

"We have achieved consistent and sustainable growth, operationally and financially. WeWork India is the leader in the flexible workspace industry and has transformed the way India works. We are committed to the robust growth and success of the business and the industry," Virwani added.

While replying to a query whether Embassy would consider buying WeWork Global's stake in India business, Virwani had in August told PTI, "I will always be a buyer of this company's equity if anyone is willing to sell it whether it's at a discount or even a slight premium. We see a long-term value to be much much higher than what it is today. So I am always going to be a buyer..

Virwani had described WeWork Global as a great partner who helped India business during the tough COVID period by making investments.

WeWork India has 50 centres, covering 6.5 million square feet area across 7 cities -- New Delhi, Gurugram, Noida, Mumbai, Bengaluru, Pune and Hyderabad. WeWork India's revenue grew by 40 per cent to Rs 400 crore during the first quarter of this fiscal year on rising demand for flexible workspace across major cities from corporates.