WeWork India eyes over 20% revenue growth; IPO opens on October 3

WeWork India plans 20% revenue growth, capacity expansion and debt reduction as it launches a Rs 3,000 crore IPO, valued at Rs 9,000 crore at the top of the price band

Co-working spaces provider WeWork India is aiming for a revenue growth of over 20 per cent for the coming years, even as its initial public offering (IPO) with only an offer for sale (OFS) component gets valued at ₹3,000 crore at the top of the price band. The IPO opens on October 3, a newspaper advertisement said.

 

“Over the last few years, we have seen 20-25 per cent revenue growth, over 30 per cent growth in earnings before interest, taxes, depreciation, and amortisation (Ebitda). Even from a capacity standpoint, over the last three years, we’ve added roughly 20 per cent capacity year-over-year (Y-o-Y). It will just follow a very similar trend,” said Karan Virwani, managing director and chief executive officer, WeWork India.

 

We Work India is the local arm of global parent We Works which filed for bankruptcy in 2023. The company has previously said that the India operations will not be impacted from the global parent’s bankruptcy proceedings.

 

With the IPO, the company’s promoter, Embassy Buildcon, an entity of Bengaluru-based Embassy Group, will sell up to 3.54 crore shares, bringing down its stake from 73.56 per cent to about 47-48 per cent.

 

On the other hand, 1 Ariel Way Tenant, a WeWork Global entity and an investor selling shareholder, will sell up to 1.08 crore shares, bringing down its stake from 22.64 per cent to about 15-16 per cent.

 

Speaking about the divestment, Virwani said, “One part of the disinvestment is to just return the capital invested and be able to use that capital in other parts of Embassy Group’s business and continue to strengthen the overall group story as well. The reason for doing the IPO now is that we feel that over the last eight years, especially in the last two to three years, we’ve de-risked the business completely. The need for capital within the business is pretty much zero. We're a fully self-sustaining business.”

 

The company’s revenue from operations increased by 26.67 per cent from ₹1,314.52 crore in financial year 2023 (FY23) to ₹1,665.14 crore in FY24, and also increased by 17.06 per cent from ₹1,665.13 crore in FY24 to ₹ 1,949.21 crore in FY25. In Q1 FY26, the revenue increased by 19.32 per cent to ₹535.31 crore.

 

As of June 2025, the company’s desk capacity in its operational centres was around 1.14 lakh.  The company aims to grow its capacity by over 20 per cent going ahead, mostly with the help of its internal accruals.

 

As of June 2025, the company’s cash and cash equivalents stood at ₹8.77 crore, down from ₹14.04 crore as of June 2024, mainly due to net cash used in investing activities.

 

The company incurred net losses for Q1 FY26 primarily as a result of its depreciation and amortisation expenses, finance costs and operating expenses. In FY25, the company had a restated profit of ₹128.2 crore, as well as a deferred tax credit of ₹285.74 crore.

 

“In the last few years, the flex industry itself has been growing at about 18-20 per cent. We are the market leaders. We will continue to push the market. So we will grow a little bit faster than that to be able to continue to penetrate and actually grow the business from here,” Virwani added.

 

As of June 2025, WeWork India’s net debt stood at ₹297.3 crore. Virwani stated that post-IPO, Embassy will put back some money back into WeWork India, to pare debt.

 

“With the cash flows that the business is actually generating by the end of this financial year, we should actually be net debt negative or net debt zero. The business can sustain this growth. Our Ebitda in FY25 was about ₹ 421.25 crore. The cash flows themselves will pay this (debt) off. After the rights issue, which we did in January, we paid off a big chunk of the high-cost debt. Today, the cost of debt is also quite manageable at 11.5 per cent,” Virwani.

 

Virwani believes that a little bit of debt is always healthy and a smart thing to have while operating the business and keeping some liquidity. “It may come down or go up slightly,” he told Business Standard.

 

The price band for the IPO has been set to be ₹615 - ₹648 per equity share with a face value of ₹10. The IPO will open on Friday, October 3 and will close on Tuesday, October 7. At the top of the price band, the company is valued at ₹9,000 crore.

 

Post-listing, WeWork India will join its peers like Awfis Solutions (market cap of ₹4,075.3 crore), Indiqube Spaces (₹4,830.26 crore), and Smartworks Co-working Spaces (₹6.437.58 crore) on the exchanges.

 

Flex spaces across India have been gaining prominence. As per JLL, flex operators leased 10.4 million square feet (msf) of office space in 2019, accounting for 17.7 per cent of the total office leasing. Cut to 2024, the operators leased 15.3 msf of space, accounting for almost 20 per cent of overall office leasing in the country.