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WeWork Inc. has paused its plan to sell its 27% stake in WeWork India, despite receiving Competition Commission of India (CCI) approval. The sale was part of a larger transaction with Embassy Group, which owns 73% of WeWork India. Disagreements over valuation halted the deal, which had included investors like Enam Group and CaratLane founder Mithun Sacheti. Embassy Group had planned to acquire WeWork Inc.'s stake and bring in new investors to prepare for an IPO. WeWork India, managing over 8 million square feet across major cities, has seen significant growth since 2017, aided by a $100 million investment from WeWork Global in 2021.
WeWork Inc. has decided to pause its plan to sell its 27% stake in WeWork India, despite receiving approval from the Competition Commission of India (CCI). The sale was part of a larger transaction involving WeWork Inc., which has filed for bankruptcy, and its Indian partner, Embassy Group. The deal also included the Embassy Group selling a 13% stake in WeWork India. Advertisement
In April, it was reported that a group of investors, including Enam Group's family office, A91 Partners, and CaratLane founder Mithun Sacheti, were expected to participate in a secondary deal valued at INR 1,200 crore. The plan involved WeWork Inc. selling its 27% stake, while Embassy Group owns the remaining 73%. The deal was structured as a two-step process, where both WeWork Inc. and Embassy Group would each sell around 40% of the company to new investors.
However, disagreements over the valuation caused the transaction to be shelved. Initially, it was expected that Embassy Group would acquire WeWork Inc.'s stake and then bring in new investors to prepare for an initial public offering (IPO). Reports suggest that WeWork India CEO Karan Virwani is currently in discussions with 360 One (formerly IIFL) to acquire part of WeWork Inc.'s share.
The Embassy Group is reportedly exploring financing options through 360 One using its existing stake. This development follows the recent success of Awfis, a competing coworking space provider in India. Awfis went public in May with a INR 600 crore offering, which was oversubscribed 108 times. Since its listing, the company's shares have surged by 83%, reflecting renewed interest in the coworking industry.
WeWork India has experienced significant growth since its launch in 2017, now managing over 8 million square feet of space across 54 locations in major cities like New Delhi, Bengaluru, Mumbai, Gurugram, Noida, Pune, and Hyderabad. In June 2021, WeWork Global invested $100 million in the company, acquiring the 27% stake currently under discussion. This capital infusion helped WeWork India weather the financial challenges brought by the pandemic and expand its operations in the competitive office space market.
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