Amid controversies, WeWork India will be opening up new coworking spaces across the nation, including three in Bengaluru, two in Hyderabad and one in Noida. The Embassy Group-owned firm, foraying the Noida market, has taken over 3 lakh sq ft office space on lease from Berger Group, Logix, and Advant to open up three coworking stations comprising of nearly 3,900 seats.
The expansion comes amidst the ongoing controversy around WeWork’s IPO plans. The company has been highly criticized ever since it planned to go public in August for its losses and questionable business model and structure. SoftBank, WeWork’s backer, suggested the firm to pause its IPO (Initial Public Offering).
WeWork as an independent entity in India
Currently, WeWork India has 26 operational coworking spaces with 46,000 accommodation seating. It has ten centers in Mumbai, nine in Bengaluru, six in Gurugram, and one in Pune where the seats are available in a price range of Rs 5,000 to Rs 40,000 per desk per month.
The growing demand from freelancers, corporates, and consultants has led to an expansion in the coworking sector like never before. WeWork in India is an independent entity with the right to execute its business in the country, and it pays a management fee to the US firm.
Lately, Embassy Group stated that there was no impact on the Indian operation of coworking business due to the pause of IPO of WeWork’s parent firm- The We Company. Under Karan Virwani and Ryan Bennett’s leadership, the Indian team of WeWork is focussed on strategic expansion with an accelerated path to profitability.
According to some reports by media, WeWork was in talks to buy around 70% stake at WeWork India at a valuation of nearly $2.75 billion.