WeWork Global plans to divest its 27% stake in WeWork India

WeWork India: Co-working giant WeWork Global, currently undergoing bankruptcy proceedings in US, is in discussions with potential investors to divest its entire 27 per cent stake in WeWork India, aiming to capitalise on its investments, according to sources familiar with matter. 

Bengaluru-based real estate firm Embassy Group, holding remaining 73 per cent stake in WeWork India, is also considering diluting some of its shareholdings to raise ditional funds, sources ded.

Established in 2017, WeWork India operates across 54 locations in key cities such as New Delhi, Bengaluru, Mumbai, Gurugram, Noida, Pune, and Hyderab, with a total asset portfolio exceeding 8 million square feet. company reported a turnover of Rs 1,400 crore during fiscal year 2022-23.

In June 2021, WeWork Global injected $100 million into WeWork India, acquiring a 27 per cent stake, which proved crucial in navigating financial challenges exacerbated by COVID-19 pandemic, particularly within office market.

WeWork India CEO Karan Virwani declined to provide a comment when approached for clarification. However, sources indicate that even if WeWork Global divests its entire stake and exits Indian market, WeWork India will retain rights to use brand name, albeit subject to payment of associated fees.

WeWork Global initiated bankruptcy proceedings in US in November last year, initiating a comprehensive restructuring process aimed at reducing debt and fortifying its financial position. However, proceedings do not encompass its centres located outside US and Cana.

Despite upheaval in its global operations, WeWork India asserts its independence from WeWork Global, affirming that its day-to-day operations remain unaffected. Virwani reiterated company's commitment to its members, landlords, and partners, underscoring its continued use of brand name as part of operating agreement.

(With PTI inputs)