New Delhi:

Co-working firm WeWork Global, which has filed for bankruptcy in the US, is in talks with potential investors to sell its entire 27 per cent stake in WeWork India to monetise its investment, sources told Press Trust of India. Has been.

Bengaluru-based real estate firm Embassy Group, which holds the remaining 73 per cent stake in WeWork India, may also dilute some shareholding to raise funds, he said.

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

WeWork India had reported a turnover of Rs 1,400 crore during the financial year 2022-23.

In June 2021, WeWork Global invested US$100 million in WeWork India to take a 27 percent stake. The investment helped Indian businesses overcome financial difficulties during the Covid pandemic, which had severely hit the office market.

When contacted, WeWork India CEO Karan Virwani declined to comment.

WeWork India will continue to use the ‘WeWork’ brand even if WeWork Global sells its entire stake and exits the India business, sources told Press Trust of India. WeWork India will pay some fees for using the brand name.

In November last year, WeWork Global filed for bankruptcy in the US and also launched a comprehensive restructuring and restructuring process to cut debt and strengthen its balance sheet.

NYSE-listed WeWork Inc had said its centers outside the US and Canada would not be part of the proceedings.

SoftBank-backed WeWork Inc, founded in 2010 and once valued at US$47 billion, reported a net loss of US$696 million in the first half of 2023.

WeWork India has been maintaining that growth in the US business will not impact its Indian operations in any way.

Virwani had said, “WeWork India operates independently from WeWork Global and our operations will not be affected in any way.”

He had said, “During this period, we will continue to have the right to use the brand name as part of the operating agreement, while serving our members, landlords and partners as usual.”

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