Office-sharing startup WeWork India has raised Rs 500 crore through a rights issue, the firm announced on January 13. The company said the funds will be used to repay debt, which would help the company in its path to go debt-free, and reduce its cost of capital.
"With the recent successful completion of our rights issue, we are on the path to being debt-free… With this capital infusion we aim to strengthen our balance sheet by repaying existing debt and aim to drive growth which will cement WeWork India's position in the industry," said Karan Virwani, Managing Director & CEO, WeWork India.
The Bengaluru-based startup, which claims to be "one of India's leading flexible workspace operators", was founded in 2016. Since then, it has expanded across 63 operational centres in Chennai, New Delhi, Gurugram, Noida, Mumbai, Bengaluru, Pune, and Hyderabad. The firm currently provides 1 lakh desks for solopreneurs and start-ups to Fortune 500 companies.
"WeWork India meets distinct workspace needs, for various businesses. WeWork India strives to provide customised and curated solutions for various office space needs through its products and solutions," the company said in its press release.
Notably, WeWork India's US counterpart had earlier filed for bankruptcy in November 2023. Its co-founder and former owner Adam Neumann had then put forward a buyout proposal worth $650 million. However, the company firmly rejected the offer. Later in May 2024, a US bankruptcy judge approved the US-based company's Chapter 11 bankruptcy plan, allowing the shared office space provider to eliminate $4 billion in debt. It is important to note here that US-based WeWork Inc had sold its entire ownership in the Indian unit last year.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
