The move to acquire and manage properties is a departure for the New York-based company, which has largely focused on renting office spaces, rather than owning them.
The New York City-headquartered company provides collaborative desks and offices to freelancers, small businesses and entrepreneurs
The deal will now not include the participation of SoftBank's Vision Fund, which had been a major backer of SoftBank's existing investment in WeWork, the report said, citing two people briefed on the deal.
Virwani said the company currently has 12 centres operational with 18,000 desks in Bengaluru, Mumbai and Gurugram. It is opening three more centres soon, one each in three cities, having 4,000 desks, taking the total number of seats to 22,000 in November.
SoftBank and its Vision Fund invested $4.4 billion in WeWork last year and the Japanese company holds two board seats.
The company launched its fifth centre at IT park project 'Embassy Tech Village' in Bengaluru. In Mumbai, the company has 4 centres and one in Gurugram.
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Initially characterised by domestic operators, the market now has a more diverse range with international entrants including WeWork, The Executive Centre and Regus
Flush with funds, the startup is now looking at entering the micro markets in tier 2 and 3 towns while WeWork is still filling up its first 2,200 seat centre in Bangalore
WeWork, which is being operated in India by the real-estate major Embassy Group, has already scouted for two more locations in Bangalore, and another in Gurugram
In India, WeWork will have to jostle with other cheaper seats available at co-working companies such as BHive, Innov8, Awfis, 91Springboard, and CoWork
The entry of WeWork is expected to give competition to a large number of players in the coworking space including BHive, Innov8, CoWork, Awfis and others
Founded in 2014, BHIVE Workspace has over 100,000 square feet of office space with 10 centres across Bangalore
The investment being discussed is a USD 2 billion primary tranche of funding, followed by a secondary round worth more than USD 1 billion. SoftBank may increase the size of the secondary investment to nearly USD 2 billion, the source said, for a total investment of nearly USD 4 billion in the shared space real estate startup.
The deal could be among the first from SoftBank's USD 100 billion technology fund, the WSJ said.
The start-up ecosystem in the country, which for long depended solely on angel investors and venture capitalists, has today been buoyed by a slew of initiatives, like the central government‘s Startup India. Along with R
WeWork is a four-year-old company that provides shared workspaces largely to start-up companies without owning the properties itself.