WeWork India raises Rs 500 crore via rights issue, aims to reduce debt

economictimes.indiatimes.com:

rights issue. The funds will be utilised for the repayment of debt, strengthening the company’s pathway to being debt free, and reducing cost of capital.

“Over the past eight years, we have been focused on long-term, sustainable growth. With the recent successful completion of our rights issue, we are on the path to being debt-free. This underscores the trust and confidence our investors and shareholders have in our vision and strategy in India. With this capital infusion we aim to strengthen our balance sheet by repaying existing debt and aim to drive growth which will cement WeWork India's position in the industry,” said Karan Virwani, Managing Director & CEO, WeWork India.

WeWork's India division is targeting an initial public offering (IPO) to raise capital in 2025. Currently, Embassy holds a 73% stake in WeWork India, while WeWork Inc. owns the remaining 27%. Embassy Buildcon invested ₹1,000 crore in WeWork India between 2017 and 2019 and plans to list the company on domestic stock exchanges, as stated last year.

WeWork India is currently operational across 8 cities, with over 1 lakh desks, catering