WeWork India is now valued at $500 million after raising a $100 million funding from WeWork's parent company in June. With the funding, Sandeep Mathrani, global chief executive officer of WeWork, is now also part of WeWork India's board.
The investment, which has been made through convertible debt instruments, will see The We Company taking an equity stake of 20 percent in WeWork India by the end of the next year, according to the coworking company's head Karan Virwani.
Currently, Embassy Group owns 93 percent of WeWork India, while The We Company owns 7 percent stake, Virwani said.
The funding and valuation come even as WeWork India is seeing only 10 percent occupancy on an average across its 34 coworking centres in the country. The company has centres across 6 cities, hosts 60,000 desks, and 40,000 members.
"Despite the pandemic, we saw our rental collections at over 90 percent," Virwani said. The company had opened up its centres in May and had laid off 100 of its 500 employees as a cost-cutting exercise.
WeWork India is now introducing a new 'On Demand' feature, which Virwani said will 'Uberize' the coworking sector. Customera can book a desk for as little as 30 minutes, with the rates at Rs 500 per day.
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