WeWork India has announced an ambitious ₹400 crore annual capital expenditure plan to expand its flexible workspace footprint across major cities. “We will add close to 2 million sq ft of office space annually in the top 7-8 cities. Typically, we would spend around ₹300-400 crore in capex each year to deliver 2 million sq ft,” stated WeWork India CEO Karan Virwani.

The Bengaluru-based coworking giant recently marked its entry into the Chennai market by launching a 130,000 sq ft, 2,000-seater flexible workspace at Olympia Cyberspace in Guindy’s industrial corridor. Virwani mentioned that the capital expenditure would be funded through a combination of WeWork’s resources and partnerships, including co-funding by landlords and revenue-sharing agreements similar to hotel management contracts.

WeWork India operates over 90,000 seats across 55 locations in eight cities, including Chennai, New Delhi, Gurugram, Noida, and Mumbai. The company’s offerings encompass a range of coworking spaces, including on-demand and shared workspaces and office space solutions. Private offices and managed office spaces for large enterprises account for 80% of WeWork India’s business.

Despite global challenges, WeWork India’s performance has remained robust. In 2017, WeWork Global, backed by SoftBank, entered the Indian market through a partnership with Bengaluru-based Embassy Group, which holds a 73% stake in WeWork India, while the global entity retains the remaining stake. Although WeWork Global filed for bankruptcy in November 2023 due to a post-pandemic demand slump, WeWork India was unaffected.

The company’s financial performance has shown significant improvement. In FY23, WeWork India’s revenue grew by 68% to ₹1,314 crore, while losses narrowed by 77% to ₹146 crore from ₹643 crore in FY21. Virwani attributed this financial turnaround to reduced lease costs post-COVID and stringent overhead control. “In the last three years, we have not even added a single headcount while we managed to add 25,000 desks in the last two years,” he explained.

Media reports suggest WeWork India may have closed FY24 with ₹1,800 crore in revenue. Although Virwani did not confirm this figure, he projected annual revenue growth at a compound annual growth rate (CAGR) of 30-40% and bottom-line growth at 50%.
As WeWork India continues its expansion, it remains focused on maintaining its position as a leader in the flexible workspace sector, providing innovative office solutions that cater to the evolving needs of modern businesses.