Co-working major WeWork India on Monday said it has raised ₹550 crore from funds managed by BPEA Credit.
The amount will be used for future growth and potential consolidation opportunities.
WeWork India has a portfolio of around 70,000 desks spread over six million square feet area in 41 centers across Bengaluru, Mumbai, Gurugram, Noida, Hyderabad, and Pune.
“Flexibility is paramount in today's workforce and the investment by BPEA Credit stands testament to the massive growth opportunity for flex workspaces in India," said Karan Virwani, CEO, WeWork India.
He said the investment also validates WeWork India's strong fundamentals and healthy business model.
"We are laser-focused on fuelling growth opportunities and fortifying our position as the leading flexible workspace brand with customisable and innovative solutions for all businesses," Virwani said.
In 2020, WeWork India raised ₹750 crore from WeWork Global which played an instrumental role in stabilising the business during the pandemic.
WeWork India’s clients’ portfolio comprises 70 per cent enterprises while 30 per cent includes startups, freelancers, and SMEs.
Earlier this month, in an interview with PTI, Virwani said, "Our revenue for this calendar year is estimated to grow to about ₹1,300 crore. The revenue was ₹760 crore in 2021."
WeWork India is not only EBITDA positive but also generating free cash flow to expand business and sustain the growth momentum, he had said. At present, the EBITDA jump is from a loss of ₹120 crore in 2021 to a profit of ₹175 crore in 2022.
On the expansion, Virwani said the portfolio would reach 6.5 million square feet by March next year and 8 million square feet by December 2023.
"In terms of desks, we will reach around 1 lakh by end of the next calendar year," he added.
The company already has presence in Noida and Gurugram in the Delhi-NCR market and is now looking at entering Delhi.
WeWork India also recently made its first investment in the Bengaluru-based conferencing and collaboration platform Zoapi to offer innovative and immersive solutions to businesses. In 2017, WeWork Global partnered with Bengaluru-based Embassy Group to enter the Indian market.