WeWork India IPO: The primary market is seeing strong investor interest in the second half of 2025. Several companies are also seeking to list their shares on the exchanges and raise fresh funds from the primary market. Amid this activity, WeWork India has also secured the market regulator’s green light for its public issue.
WeWork India IPO: Offer For Sale
WeWork India IPO will consist only of an offer-for-sale component. Promoters of the company namely Embassy Buildcon and Ariel Way Tenant will pare their stake in the company in the OFS. Embassy Buildcon LLP will sell up to 33,458,659 equity shares of WeWork India in the OFS and Ariel Way Tenant Ltd will sell 10,295,293 shares.
WeWork India: Business Model
WeWork India was launched in 2017. The company is a provider of flexible workspaces in India. According to WeWork India’s DRHP the company is the largest flexible workspaces operator in India in terms of revenue. Notably WeWork India is a licensee of the US based WeWork Brand in India. The company provides flexible workspaces to companies of various sizes ranging from large enterprises, small and mid-size businesses, startups and individuals. The company also mentioned in its DRHP that it has multi-asset relationships with several developers in Tier 1 cities. The company’s core business involves leasing Grade A office spaces from developers and designing, building, and operating them as flexible workspaces in accordance with global standards. Grade A real estate refers to properties which are usually in prime locations, have modern design and have high quality construction. The company operates in geographies such as Bengaluru, Mumbai, Pune, Hyderabad, Gurgaon, Noida, Delhi, and Chennai.
WeWork India: Key Financials
According to WeWork India’s DRHP the company’s consolidated revenue from operations for the six-month period ended September 30, 2024 stood at Rs 918.19 crore. The company’s consolidated profit-after-tax for the same period stood at Rs 174.57 crore. Earlier in FY24, WeWork India’s consolidated revenue from operations grew by over 26 per cent to Rs 1665.1 crore compared to Rs 1314.5 crore in the preceding fiscal. The company’s net loss for FY24 stood at Rs 135.77 crore compared to a net loss of Rs 146.81 crore in FY23.
WeWork India: Key Competitors
According to WeWork India’s DRHP there are over 440 flexible workspace operators in India. The top 10 flexible workspace operators in India include the soon to be listed Smartworks Ltd, Table Space, Awfis, and IndiQube. WeWork India competes with the peers mentioned above.
WeWork India IPO: Strengths and Risks
Here’s a look at some of the key strengths related to WeWork India:
WeWork India claimed in its prospectus that it is a pioneer in the flexible workspace sector and enjoys strong brand recognition in India.
The company claimed in its DRHP that it has remained the largest flexible workspace operator in terms of total revenue in FY 24, FY23 and FY22.
The company claims that it has leveraged its multi-asset relationships with major real estate developers across Tier 1 cities to lease Grade A properties. And Grade A properties account for 93 per cent of the company’s portfolio as of June 30, 2024.
The company added that one of its qualitative strengths also includes having an extensive range of products and services in the flexible workspace industry in India such as enterprise office suites, customized managed offices, private offices, co-working spaces etc.
Here’s a look at some of the key weaknesses mentioned in WeWork India’s DRHP:
The company mentioned in its DRHP that it derives a bulk of its net membership fees from its centres located in Bengaluru and Mumbai. As of September 30, 2024, centres in Bengaluru and Mumbai contributed to 70.64 per cent of the company’s revenue, thus any adverse developments in these locations are expected to affect the company’s business negatively.
WeWork India also mentioned in its DRHP that it has signed long-term lease agreements with its landlords for a leasable area of 6.17 million square feet spread across 51 centres in eight cities. Inability to pay rentals or renew agreements is also likely to affect the company’s results of operations and cash flows.
The company said in its DRHP that its failure to retain or attract new members is also likely to negatively impact its business and financial condition.
WeWork India said in its DRHP that any negative member experience is expected to damage its brand image and ability to onboard companies as new members.
WeWork India IPO: Objective
Since the public issue is an offer-for-sale, WeWork India will not receive the proceeds of the public issue. However the coworking space operator plans to achieve the benefits of listing its shares and expects the listing to enhance its visibility and brand image.
