The Competition Commission of India (CCI) has approved the exit of US-based We Work Inc from its Indian subsidiary. In a circular issued on Tuesday, June 18, the competition regulator sanctioned WeWork Inc’s plan to sell its stake in We Work India to specific investors.
The order states that the acquisition involves Real Trustee Advisory Company (acting as trustee for Volrado Venture Partners Fund II) and Volrado Venture Partners Fund III, along with other independent co-acquirers, purchasing certain share capital of WeWork India. Additionally, Embassy Buildcon will acquire 100% of 1 Ariel Way Tenant (OAW), which holds shares on behalf of WeWork International.
Currently, Bengaluru-based Embassy Group owns 73% of WeWork India, while WeWork Inc holds the remaining 27%. In April, it was reported that WeWork Inc was planning to sell its 27% stake in WeWork India through an INR 1,200 crore secondary transaction, with potential buyers including Enam Group’s family office, investment firm A91 Partners, and CaratLane founder Mithun Sacheti.
The CCI noted that the deal would unfold in two steps, with WeWork Inc and Embassy Group together selling nearly 40% of the local coworking unit. This decision follows WeWork Inc’s Chapter 11 bankruptcy filing in November 2023.
Unlike its US counterpart, WeWork India continues to prosper, recording a 68% year-on-year revenue increase to INR 1,300 crore in the financial year 2022-23, while losses decreased by 80% year-on-year to INR 146 crore during the same period.
Since entering the Indian market, WeWork India has raised about INR 2,000 crore in funding through various rounds. It provides flexible, on-demand workspaces for startups and employees at numerous locations across the country. The company has allocated INR 400 crore for annual capital expenditures to support significant expansion in major cities, planning to add nearly 2 million square feet of office space each year in the top seven to eight cities.
The coworking sector in India is experiencing robust growth, driven by post-pandemic demand recovery. This development coincides with the recent stock market listing of a competitor to WeWork India.
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