US-based co-working space provider We Company is considering paying $1.9bn to acquire a 70% stake in its Indian affiliate WeWork India, which is backed by property developer Embassy Group, Bloomberg reported today.
The deal would value WeWork India at $2.75bn and would comprise an unspecified ratio of stock and cash. It is expected to close as soon as this August, an unnamed source said.
WeWork India was launched in 2017 and is managed by Buildcon, an investment holding firm owned by real estate tycoon Jitu Virwani and his son Karan Virwani. The company currently has a licence to use the WeWork brand until 2021.
WeWork India secured $15.7m in funding from Embassy Group, whose chairman and managing director is Jitu Virwani, in January 2018. We Company does not own equity in the offshoot currently but is entitled to a profit share and fee as part of the licensing agreement.
The Indian franchise offers some 35,000 desks across more than 20 locations, but plans to increase the number of desks to 90,000 by March 2020.
Founded in 2010 as WeWork before rebranding earlier this year, We Company’s core business consists of a global network of co-working spaces across 425 locations in 36 countries.
The company has also launched plans to diversify its business with co-living spaces (WeLive), boutique hotels (WeSleep and Vi Sover), coffee shops that double as meeting spaces (WeConnect), a financial services offering (WeBank) and yacht chartering (WeSail). It confidentially filed for an initial public offering in December 2018.
– Photo courtesy of WeWork India.
