WeWork India, the affiliate company of the U.S. based co-working company WeWork, said that it will receive $100 Mn funding from its parent company – WeWork Global. The latest funding will surely come as a huge boost for WeWork India as the global co-working industry tries very hard to grapple with the impact of the COVID-19 crises.
As such, reports were rife that WeWork’s Indian affiliate company was struggling to raise funds since last year. According to the reports, the company was in talks with banks and investors to raise nearly $200 Mn but the negotiation did not yield results. Its struggle to raise funds was certainly the result of investor’s sliding faith in WeWork following its botched up IPO last year.
Karan Virwani, CEO, WeWork India, said, “The flexible workspace industry in India and around the world is facing its biggest challenge yet. In that, we see a new opportunity that suits our members’ evolving needs. This is driven by an acceleration towards variable real estate costs, the confidence of safe and well-managed workspaces for their employees.”
“The fresh round of capital from our long-term partners at WeWork global represents a vote of confidence in our strategy and will help us serve our community better,” Virwani further added.
The $100 Mn funding for WeWork India has come at a time when its rival Awfis just raised Rs 40 crore couple of days back. The funding was part of the series D round for the Delhi headquartered company.
WeWork India is operated by the Embassy Group – one of India’s leading real estate companies. WeWork had entered in partnership with Embassy Group in the year 2017. Embassy Group holds 100% rights over WeWork India, which is an independent entity with the right to execute WeCo’s business in the country.