Bangalore-based Embassy Group Plans IPO for WeWork India Following Full Acquisition

After purchasing the remaining 27% stake from US-based WeWork for approximately ₹700 crore, Embassy Group is poised to take WeWork India public. Plans are underway to list the coworking office platform on domestic bourses within 18 months, according to sources familiar with the matter.

Following the acquisition, the Bengaluru-based property developer will assume full ownership of WeWork India. As part of the subsequent transactions, Embassy Group intends to offload a 40% stake to investors including Enam Group, A91 Partners, and CaratLane's founder Mithun Sacheti for ₹1,200 crore. Post-divestment, Embassy will retain a 60% stake in WeWork India, which includes a provision of 5% for Employee Stock Ownership Plans (ESOPs).

Sources indicated that WeWork India is slated to initiate the IPO process by the year's end, buoyed by robust performance metrics in revenue and profitability. The company's journey toward an initial public offering follows regulatory approvals from the Competition Commission of India (CCI) and the Reserve Bank of India (RBI).

In the wake of WeWork's Chapter 11 bankruptcy filing in October 2023, WeWork India had been engaged in negotiations to buy back the stake held by its US counterpart. Despite WeWork's complete exit from the ownership structure, WeWork India will maintain its brand association, paying a 2% franchise fee to the global coworking leader.

WeWork India, recognized as one of WeWork’s most rapidly expanding affiliates outside the US, has demonstrated significant growth, setting a revenue goal of ₹1,800 crore for the fiscal year ending March 31. In the first half of FY24, the company reported a 40% year-on-year increase in revenue, totaling ₹831 crore, with EBITDA climbing 90% to ₹532 crore.

Looking ahead, WeWork India aims to add approximately 1.5-2 million square feet of office space annually.

Currently operating across 54 locations in seven cities, the company supports a vibrant community of over 70,000 members, comprising more than 90,000 desks across 8 million square feet. The member base predominantly consists of enterprises, supplemented by small and medium-sized businesses (SMBs), entrepreneurs, and startups.