Tuesday, March 5, 2024

WeWork bankruptcy: India business will not be impacted in any manner, says WeWork India CEO Karan Virwani

Representational image of the WeWork office in Bengaluru.

Representational image of the WeWork office in Bengaluru.
| Photo Credit: G.R.N. Somashekar

Coworking major WeWork India on Tuesday said the Indian business will not be impacted in any manner, as it is not part of the bankruptcy proceedings filed by WeWork Global in the US court.

In WeWork India, Bengaluru-based real estate firm Embassy Group has a 73% stake, while WeWork Global has a 27% shareholding.

WeWork India has 50 centres, comprising around 90,000 desks, across seven cities.

In a statement, WeWork India CEO Karan Virwani asserted that the Indian business is independent from WeWork Global and hence its operations will not be impacted.

“WeWork India operates independently of WeWork Global, and our operations will not be affected in any manner,” he said.

Virwani noted that WeWork India is a separate entity in itself, and it is not a part of this strategic reorganisation process.

The bankruptcy filing does not impact the operations of the global entity as it continues to remain in possession of its business, operating as usual, he added.

The process restructures the debts and the leases of WeWork Global in the U.S. and Canada.

“During this period, we will continue to hold the rights to use the brand name as part of the operating agreement, while serving our members, landlords, and partners as usual,” Mr. Virwani said.

WeWork India is backed by majority stake holder Embassy Group, he said.

Mr. Virwani said the Embassy Group is committed to investing in the future of WeWork India business.

“We remain fully focused on delivering exceptional and innovative flexible workspace solutions for our members in the region. We are the leaders in the flexible workspace industry and have transformed the way India works,” he said.

Mr. Virwani said WeWork India has been profitable since 2021.

In August, he had said that WeWork India’s revenue grew by 40 per cent to Rs 400 crore during the first quarter of this fiscal year, on rising demand for flexible workspace across major cities from corporates.

Its turnover stood at ₹1,400 crore during the last fiscal year.

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