WeWork Inc.’s plan to exit its Indian unit through a secondary stake sale has fallen apart, just as the coworking sector begins to show signs of recovery. This development highlights the ongoing challenges faced by WeWork following its bankruptcy.
The deal involved WeWork Inc. selling its entire 27% stake in WeWork India, while the Embassy Group aimed to divest an additional 13% to a consortium of investors, including the Enam Group family office and A91 Partners. This secondary transaction was valued at ₹1,200 crore and was initially approved by the Competition Commission of India (CCI).
Insiders revealed that the failure of the transaction stemmed from a valuation mismatch between WeWork and the Embassy Group. The latter was supposed to acquire the stake held by WeWork US and attract new investors to prepare for a potential public offering.
In light of this setback, Karan Virwani, CEO of WeWork India, is reportedly in discussions with 360 One, formerly known as IIFL Wealth and Asset Management, to acquire part of WeWork Inc.’s stake in the Indian unit.
This news comes on the heels of a successful IPO by WeWork India’s rival, Awfis, which raised ₹600 crore and was oversubscribed 108 times, indicating a rebound in the coworking space. In the first half of FY24, WeWork India reported revenues of ₹831 crore, a 40% increase year-on-year, suggesting positive momentum despite the challenges.
In other news, India’s burgeoning adoption of Generative AI was highlighted by Chris Cox of Meta, who noted that India is rapidly becoming the largest market for Meta’s AI personal assistant. He emphasized the need for the country to invest in AI infrastructure, including clean energy, to support future growth.
