WeWork India’s Karan Virwani unfazed even though WeWork files for bankruptcy in the US

In spite of its global parent company filing for bankruptcy, WeWork India CEO Karan Virwani is confident of pulling his business off the clutter. Following months of speculations, the WeWork Global entity filed for Chapter 11 bankruptcy in the US, which provides for reorganisation of business and protection against creditors’ demands.

While the global entity is marred, Virwani tells Business Today that the India business is in sound health and its growth plans remain intact, irrespective of downturn in WeWork’s US business. WeWork India is operated by Bangalore-based Embassy Group and is an 80:20 joint venture between Embassy and WeWork Global.

According to him, the India unit, for which Embassy holds the rights to use the WeWork brand name, has achieved significant success in recent times, especially post-COVID. In FY2023, WeWork India grew its top-line by 75 per cent year-on-year to Rs 1,400 crore - up from Rs 800 crore. While it also become profitable at EBITDA level (earnings before interest, tax, depreciation and amortisation). WeWork India posted Rs 250 crore EBITDA last financial year.

“Any development globally has no bearing on the operations of the business. In India, we will continue to operate and serve our members, landlords, and partners as usual,” said Virwani, adding, “We are backed by the Embassy Group which holds the majority stake and control to run and operate the business in India. We have achieved consistent and sustainable growth, operationally and financially. WeWork India is the leader in the flexible workspace industry and has transformed the way India works.”

“In FY2024, we have gained further momentum and we may end the year by growing our revenue by 40-50 per cent. I expect this trend to continue for the next two years” he told BT. WeWork India has over 90,000 desks and 6.5 million square-feet of space under its fold, spread across 50 locations in 7 cities. Virwani says, the firm is well positioned to add 20,000 desks every year without adding much manpower in India.

While WeWork Global has been suffering due to high real estate rentals vis-a-vis sounded demand, he claims that WeWork India is unable to meet the demand with its supply. “We are always having a situation where demand is ahead of our supply. Our goal is to have 15 million sq.ft. capacity - up from 6.5 million sq.ft. now. I believe there is enough room for us to grow and become that big,” he said.