WeWork gets CCI nod to sell stake in local unit, exit Indian market

Deal value not revealed; regulator expected to release detailed order is likely later

The Competition Commission of India (CCI) on Tuesday evening approved American co-working space firm WeWork’s entire 27.5 per cent stake in its India unit to be sold to Real Trustee Advisory Company.

The CCI did not give the deal value or name the entities investing in WeWork India through Real Trustee -- a detailed order is likely later. WeWork India said it did not have any comments.

The deal would involve a two-step process in which WeWork Inc and WeWork India's parent, Embassy group, will together sell about 40 per cent stake in the local coworking unit. It will lead to WeWork exiting the Indian market.

"CCI has approved the acquisition of certain share capital of WeWork India Management (WeWork India) by Real Trustee Advisory Company (Real Trustee) (in its capacity as trustee for Volrado Venture Partners Fund II (Volrado II), Volrado Venture Partners Fund III - Beta (Volrado III) and other independent co-acquirers, and 100 per cent share capital of 1 Ariel Way Tenant Limited (OAW) by Embassy Buildcon LLP," said the regulator in a press statement.

The Embassy group owns a majority of 72.5 per cent stake in WeWork India and the rest is held by 1 Ariel Way Limited, WeWork's UK subsidiary.

Deals beyond a certain threshold require approval by the CCI, which keeps a tab on unfair business practices and promotes fair competition in the marketplace.

WeWorkIndia operates in flexible workspaces and digital real estate workplace solutions for companies. While its business in the USA has struggled, it has been largely successful in India. It had a turnover of Rs 1,400 crore in 2022-23.

WeWork India, which started operations in 2017, has over 8 million square feet of assets in 54 locations in New Delhi, Bengaluru, Mumbai, Gurugram, Noida, Pune, and Hyderabad.

In June 2021, WeWork Global invested $100 million in WeWork India to pick a 27 per cent stake. The investment helped Indian business and office market to tide over the financial difficulties during the pandemic.