With 10,000 desks and 7 lakh sq ft sold, WeWork India boasts new high in quarter sales
In line with its long-term growth strategy and aim for profitability, WeWork India, the flexible workspaces operator has recorded the highest ever quarterly sales with 10,000 desks totaling to 7 lakh sft sold in the Jan-March period.
The firm has also raised additional Rs 200 crore to fuel its growth from both domestic and international investors. “The future of flexible workspaces is looking brighter than ever and WeWork has the right foundations and experience to provide safe, flexible options for companies and workforce of all sizes. While last year was challenging for the industry, we have seen a steady uptick in demand from members of all sizes, and we will continue to remain bullish and focus on the growth of flexible workspaces in the country,” said Karan Virwani, CEO, WeWork India.
Last September, US-based office space provider WeWork Global bought 25% stake in WeWork India, a fully-owned subsidiary of Bengaluru-based estate developer Embassy Group, for $100 million as the company looks to scale up India operations over the next 36 months.
Following the challenging period for the industry due the lockdown last year. Over the last year, WeWork has also seen a strong demand from enterprises, who are now looking at flexible workspaces as a viable long-term real estate option. WeWork’s enterprise portfolio saw a 10% jump to now constitute 60% enterprise members.
“We are poised for sustainable long term growth and are aiming for profitability in 2021. Our focus remains on providing a wide range of flexible offerings to meet our members’ evolving needs. The new capital we have raised will help us in continuing our upwards momentum and truly explore the potential of flexible workspaces in the Indian market,” said Virwani.
WeWork entered into a partnership with Embassy Group in 2017 and started operations in the Indian market. As of Q1 2020, WeWork has 828 locations in over 149 cities and 38 countries. It has 662,000 members, including 43% of the Global Fortune 500.
As per, Colliers International, during 2021, flexible workspace operators are likely to lease about 3 million square feet of space across the top six Indian cities, as operators are likely to focus on signing large enterprise-level deals and cut down on speculative centers. During 2020, flexible workspace operators leased about 2.9 million square feet of space led by technology, and banking and financial services (BFSI) enterprises.