WeWork India says not impacted by US-based WeWork Global's bankruptcy warning

economictimes.indiatimes.com:

WeWork India on Wednesday said its business will have no impact from the development in US-based WeWork Global, which has said «substantial doubt» exists about the company's ability to continue as a going concern. In WeWork India, Bengaluru-based real estate firm Embassy Group hold a 73% stake, while WeWork Global has a 27% shareholding. In June 2021, WeWork Global, which is a leading provider of flexible workspace, invested $100 million (about Rs 750 crore) in WeWork India.

While announcing its quarterly result, WeWork said, "...as a result of the company's losses and projected cash needs, combined with increased member churn and current liquidity levels, substantial doubt exists about the company's ability to continue as a going concern". WeWork Global has reported a net loss of $696 million in the first half of this year. Reacting to the WeWork Global warning, WeWork India CEO Karan Virwani in a statement said, «Since inception, WeWork India has been backed by Embassy Group, which holds the majority stake and control to run and operate WeWork Global's business in India.

Any development globally has no impact on our business here». Despite the challenges brought on by the pandemic, he said WeWork India emerged profitable early last year. «We ended FY2022-23 with a revenue of Rs 1,400 crore and 250 crore in earnings».

«We have built a strong network of local stakeholders, members, landlords and developers who are increasingly looking to partner with us. We are focused on growth with sustained profitability, and the fundamentals of our business remain strong. We are committed to the continued success of our members, and partners,» Virwani said.