Flexible workspace provider WeWork India has raised ₹550 crores, or around $66.5 million, from private credit platform BPEA Credit to support its expansion plans.
The company started operations in India in 2017, and it now has 41 locations spread across six of the country’s biggest cities, including Bengaluru, Mumbai, Gurugram, Noida, Hyderabad, and Pune. WeWork India is a joint venture between WeWork International and commercial real estate giant Embassy Group, which holds a major stake in the company.
“We are laser-focused on fuelling growth opportunities and fortifying our position as the leading flexible workspace brand with customizable and innovative solutions for all businesses,” Karan Virwani, chief executive of WeWork India, said in a statement.
The company’s “bullish” outlook on expansion over the next year is reflected in the capital gain. Since the pandemic, the sector has moved in favor of flexible workspaces, which has been advantageous for the company.
“With India Inc. transitioning towards a hybrid work model, there has been a growing demand for flexibility,” WeWork India said, adding that it remains “prudent” about its overall business strategy.
Avendus Capital was the financial advisor to WeWork India on the transaction.
“This fund raise by WeWork India strongly underscores the increasing confidence of the investment community in the growth prospects of India’s flex workspace sector. This would be one of the largest transactions in this sector, and we are confident that it will open up many such investment opportunities,” said Prateek Jhawar, Executive Director and Head, Infrastructure & Real Assets Investment Banking at Avendus Capital.