Bengaluru: WeWork India Management Ltd, the country’s largest flexible workspace operator, will launch its initial public offering (IPO) on Friday as its shareholders plan to raise up to ₹3,000 crore.
The issue is set to be a pure offer for sale (OFS), with no fresh issue as promoter Embassy Buildcon LLP and investor 1Ariel Way Tenant (WeWork International) selling shares.
Currently, Embassy holds about 76.21% in WeWork India, while Ariel owns 23.45%. Post IPO, Embassy will continue to hold around 50% of the business, while WeWork International’s stake will be in the mid-teens.
“They won’t exit fully,” said Karan Virwani, managing director and chief executive officer at WeWork India.
With a portfolio of 114,000 desks and 7.7 million sq ft of operating space, WeWork India operates in eight cities.
“The flex industry in India, arguably one of the fastest growing markets, is still at a nascent stage. We want to be a driver of that growth. We have derisked the business and we want to grow profitably. Recent IPOs show that investors have accepted the business model and there is a market for everyone,” Virwani said in an interview with Mint. “But from a point scale, size and quality, WeWork India stands out.”
WeWork India pays a small royalty fee to the global firm to use the brand. However, the India affiliate manages the business and has built its own strategy. WeWork India is looking to expand in the cities where it already has operations.
The IPO journey of India’s flex workspace operators started a year back, with the public listing of Awfis in 2024. That set the tone for the industry as IndiQube and Smartworks Coworking Spaces went public this year.
The Executive Centre India, part of Hong Kong-headquartered TEC Group, has also filed draft papers to raise ₹2,600 crore. The funds will be mainly used for international expansion and acquisitions.
As the commercial office market in India turned around after the pandemic, strong demand drove the adoption of flex workspaces. These shared offices allow companies to rent space for varying durations.
In India, flexible workspaces come in two forms—co-working, where multiple companies can share the office premises; and managed offices, where space is customized for individual companies.
Flex leasing jumped from 7.9 million sq. ft in 2022 to 15.8 million sq. ft in 2024, according to property advisory CBRE India. The share of flex space leasing in overall office leasing grew from 14% to 20% during this period.
Avendus Capital, an investment bank, forecast that the sector will grow to address a $9 billion market by 2028.
WeWork India posted a net profit of ₹128.1 crore in 2024-25, compared to a loss of ₹135.7 crore in FY24. Revenue from operations jumped to ₹1,949.2 crore from ₹1,665.1 crore.
