WeWork India reported a revenue growth of 26.7% for the fiscal year ending March 2024, with operational revenues reaching Rs 1,665 crore compared to Rs 1,315 crore in FY23. Despite recent financial hurdles faced by its global parent, WeWork Inc., WeWork India has shown impressive resilience, achieving double-digit growth and reducing losses. This performance could renew investor interest in the company, which had previously sought to sell its 27% stake in WeWork India to Embassy Group, a deal that collapsed over valuation concerns.

Operating under the global WeWork brand, WeWork India offers flexible workspace solutions, including co-working spaces and custom-built office spaces for various businesses. Memberships, which account for 84% of total revenue, were the primary income source, increasing by nearly 49% to Rs 1,402.5 crore in FY24. Revenue from other services, such as conference room rentals and printing, saw a decline, but the company managed to offset these with growth in membership subscriptions.

In addition to its operational revenue, WeWork India earned Rs 72 crore from non-operating income sources, including interest on financial assets, bringing its total revenue to Rs 1,737 crore for FY24. Improved financial management enabled WeWork India to contain its total expenses, which rose 19.1% to Rs 1,870 crore. Depreciation and amortization comprised the largest expense, contributing 40% of total costs, while finance costs increased by 22.6% to Rs 507.7 crore.

Despite the rise in expenses, WeWork India’s efforts to streamline operations paid off, as the company reduced its net losses by 7.6%, reporting a loss of Rs 135.7 crore in FY24, down from Rs 146.8 crore in FY23. The company’s strong EBITDA performance, reaching Rs 1,119 crore, contributed to an EBITDA margin improvement of 64.42%. Additionally, WeWork India generated a robust operating cash flow of Rs 1,160 crore, positioning it as one of the few cash-rich companies in the flexible workspace sector.

WeWork Inc., which filed for Chapter 11 bankruptcy in November 2023 and emerged from bankruptcy in May 2024, has been divesting assets worldwide, including its stake in WeWork India. While the proposed sale of its Indian unit to Embassy Group stalled, WeWork India is exploring new options, including a potential IPO with a targeted valuation between $2-2.5 billion. This strategic move aims to leverage India’s growing demand for flexible workspaces and take advantage of the favourable market environment that recently boosted competitor Awfis post-listing.

WeWork India’s growth trajectory, improved bottom line, and robust operational metrics signal a promising future for the company. Its focus on increasing revenue through memberships and maintaining operational efficiency highlights its strong foothold in India’s flexible office market. With an eye on an IPO, WeWork India is well-positioned to navigate challenges and capitalise on a rapidly expanding market for flexible workspaces in India.