Mint Explainer: Will WeWork’s troubles affect India ops?

livemint.com:

₹550 crore from BPEA Credit, a private credit platform, last December. WeWork India chief executive Karan Virwani said WeWork continues to be a category-defining brand. The recent news of WeWork globally did stir up questions among tenants and members in India, but Virwani said the management has explained to them that business in the country will continue as usual.

“People know we are a separate entity, and we want to build on that. But the brand carries tremendous value and matters even today," he added. Even as profitability remains elusive for WeWork Inc, WeWork India clocked revenues of ₹1,400 crore in 2022-23 and EBITDA of ₹250 crore.

EBITDA is earnings before interest, taxes, depreciation, and amortization. Amid speculation that WeWork will file for bankruptcy in the US, Virwani said the April-June quarter of FY24 has seen big growth in WeWork India’s revenue, with sales of 12,000 desks across cities. It has added 14,000 desks since April and is present in seven cities.

Its portfolio comprises 90,000 desks and 70,000 members. The company, which saw a slowdown before and during the pandemic as it focused on turning profitable, has returned to the growth track in the past two years. However, it plans to continue operating in the top cities and has not ventured into tier-2 markets like some of its peers.

WeWork India, which opened its 50th workspace in Delhi’s Eldeco Centre, with 700 desks and 54,000 sq ft of space, remains one of the largest operators in the flexible workspace sector. India’s flexible workspace market is expected to hit 126 million sq ft by 2027 from the current 46.7 million sq ft, at a compound annual growth rate (CAGR) of 22%, according to a May report by IndiQube-CRE Matrix. The demand for