WeWork's plan to offload stake in Indian unit falls through
WeWork's strategy to sell its 27% stake in its Indian subsidiary has been unsuccessful, despite receiving approval from the Competition Commission of India (CCI). The deal involved the Embassy Group acquiring WeWork's stake and introducing new investors. However, due to a valuation mismatch, the transaction did not proceed as planned. This development follows a successful public offering by WeWork India's competitor Awfis in May, indicating a sector revival.
WeWork India's stake sale and potential public offering
The proposed deal, approved by the CCI on June 18, involved a two-step process. This would have seen both WeWork Inc. and Embassy selling approximately 40% of their stakes to new investors. The Embassy Group was expected to acquire the 27% stake held by WeWork Inc in the India business and subsequently bring in investors as part of a plan for a potential public offering.
WeWork India CEO in talks with 360 One
Karan Virwani, CEO of WeWork India, is currently in discussions with 360 One, formerly known as IIFL. The talks are centered around the potential purchase of some part of the 27% stake held by WeWork Inc in its Indian unit. This comes as a new development following the unsuccessful stake sale deal between WeWork and Embassy Group.
WeWork India's performance and sector outlook
WeWork India reported a revenue of ₹831 crore for the first six months of FY24, marking a 40% increase year-on-year. The office-sharing sector has seen significant growth in India over the past year, with other coworking platforms such as TableSpace, Indiqube, CoWorks, 91Springboard and Bhive also operating in the country. This trend is contrary to most other markets globally.