WeWork’s Exit From India Approved By CCI

The Competition Commission of India (CCI) has given the green light to WeWork Inc’s plan to sell its entire 27 per cent stake in its Indian subsidiary, signaling the company’s exit from the Indian market. 

This decision, announced late Tuesday evening, is a significant shift for the coworking giant as it undergoes a strategic divestment. The transaction will unfold in two stages, with WeWork Inc and the Embassy Group, WeWork India’s parent company, together divesting approximately 40 per cent of their stake in the local unit.

WeWork Inc, co-founded by Adam Neumann and Miguel McKelvey, has been navigating a tumultuous period after filing for Chapter 11 bankruptcy in the US last November. The company recently appointed John Santora as its new CEO as part of its restructuring efforts. 

Despite these challenges, WeWork India has shown financial resilience. Under the leadership of CEO Karan Virwani, the Indian business reported revenues of Rs 1,300 crore for the fiscal year 2022-23, a 68 per cent increase year-on-year (YoY). Additionally, net losses were significantly reduced by 80 per cent to Rs 146 crore during the same period.

The CCI’s announcement did not disclose the identities of the new investors set to acquire the stakes in WeWork India. This exit occurs at a time when the coworking sector in India is experiencing a resurgence in demand post-pandemic. Prominent coworking startups such as Awfis, which is backed by Peak XV Partners and has recently gone public, along with Indiqube, CoWorks, 91Springboard, and Bhive, are expanding their footprint in the burgeoning market.