Coworking major, WeWork India, has revealed that it has received funding of US$ 100 million (approx Rs 750 crore) from the parent company, WeWork, for sustainable growth and focus on India as a strategic market.
While the co-working segment had already been on a growth path in the last few years in the country, the unexpected COVID-19 crisis seems to have accelerated the shift to flexible workspaces, with businesses of all sizes looking to manage cash flows effectively, by moving costs to a variable model.
With this new funding, the commitment of US-based WeWork to the Indian co-working market has been reaffirmed. This fresh investment from the parent company is like a “vote of confidence” in WeWork India’s strategy according to Karan Virwani, CEO, WeWork India, and “… will help us serve our community better.”
As per the official statement, the WeWork India business will concentrate on showcasing its strengths through its extensive network of partners and vendors in the country.
WeWork India was already on a profitable path and will continue to play a significant role in the global scheme of business for WeWork. Its business is driven by an acceleration towards variable real-estate costs, the confidence of safe and well-managed workspaces for employees, and the growth opportunities that are intrinsic to the WeWork community.
According to WeWork India, for corporates, “Space as a service is a huge opportunity to free up cash, and WeWork has the right foundations and experience to provide safe, flexible workspaces.”
Since its entry into the Indian market in 2016, WeWork has been providing full service and innovative workspaces with over 60,000 desks in 34 locations, across six cities.
Recently the Company had also laid off around 20 per cent of its employees, joining a number of firms resorting to shrinking their workforces as a cost-cutting measure. Prior to that, in March, WeWork Global had laid off 250 employees.