24th April 2024 – According to insiders, coworking company WeWork Global, which has declared bankruptcy in the US, is in negotiations with possible buyers to sell its whole 27% interest in WeWork India in order to recoup its financial outlay.
They also said that in order to raise money, the real estate company Embassy Group, located in Bengaluru and which owns the remaining 73% of WeWork India, may reduce part of its shareholdings. WeWork India began operations in 2017 and now has 54 sites in New Delhi, Bengaluru, Mumbai, Gurugram, Noida, Pune, and Hyderabad with over 8 million square feet of signed assets.
WeWork India reported a revenue of Rs 1,400 crore for the fiscal year 2022–2023. WeWork Global made a USD 100 million investment in WeWork India in June 2021, acquiring a 27% interest. The COVID epidemic had a devastating effect on the office market, and the investments helped Indian businesses weather the financial storm. Karan Virwani, CEO of WeWork India, refused to comment when reached.
Conclusion
According to sources, WeWork India will keep the “WeWork” name even if WeWork Global sells all of its shares and leaves the India market. However, to use the brand name, WeWork India would have to pay certain costs.
Source:Link
