Management

• Jitendra Mohandas Virwani (Chairman and Non-Executive Director)
• Karan Virwani (Managing Director and Chief Executive Officer)
• Adnan Mostafa Ahmad (Non-Executive Nominee Director)
• Manoj Kumar Kohli (Independent Director)
• Mahua Acharya (Independent Director)
• Anupa Rajiv Sahney (Independent Director)
• Udayan Shukla (Company Secretary and Compliance Officer)
• Clifford Noel Lobo (Chief Financial Officer)

Use of Proceeds

The total issue size is Rs. 3000 cr which comprises entirely of fresh issue. Company will not receive any proceeds from the offer.

Competitive Strengths

Strong Brand Leadership and Global Pull WeWork India has established itself as the most recognized brand in India’s flexible workspace sector, consistently leading search volumes—4x higher than its closest competitor during Oct 2023–Sep 2024, according to AGR. It ranks first in brand awareness and customer perception, excelling in global presence, flexible offerings, premium locations, and strong community engagement. Members value its modern infrastructure, scalability, professional support, and vibrant networking ecosystem. While operations are India-centric, the global WeWork brand attracts multinational enterprises seeking consistent workspace experiences across geographies. A case in point is a global pharmaceutical client that expanded from 91 desks in 2021 to 2,228 desks across Mumbai, Pune, and Hyderabad by mid-2025, demonstrating WeWork India’s ability to scale with client needs.

Leadership in a High-Growth Flexible Workspace Market WeWork India has cemented its leadership as the largest premium flexible workspace operator by revenue over the last three fiscals, delivering strong growth and profitability. Total income rose from ₹14,227.7 million in FY23 to ₹20,240.0 million in FY25 (+42%), while revenue from operations climbed from ₹13,145.2 million to ₹19,492.1 million over the same period. Adjusted EBITDA margin expanded from 14.6% in FY23 to 21.6% in FY25, underscoring operating leverage. In Q1 FY26, revenues grew 19.3% YoY with an 18.1% margin. The company significantly outperforms peers, generating 1.42x revenue and 2.45x EBITDA of its closest competitor. With India’s flex stock expected to nearly double to ~140–144 msf by 2027, WeWork India is strongly positioned to capture rising demand.

Strategic Backing from Embassy Group and WeWork Global WeWork India benefits from strong parentage under Embassy Group, one of India’s top developers with over 85 million sq. ft. of real estate and sponsor of Asia’s largest office REIT. This backing provides access to marquee Grade A assets, large corporate tenants, facility management expertise, financing networks, and vendor ecosystems. As of June 30, 2025, WeWork India leased 1.36 million sq. ft. from Embassy Group and REIT, enhancing scale and credibility. Additionally, its partnership with WeWork Global, spanning 600 locations in 35 countries, strengthens brand equity and appeals to multinational clients. A case study of Customer B highlights how Embassy REIT-enabled access allowed seamless expansion from 40 to 335 desks, underscoring the value of these relationships.

Expanding, Diverse, and Loyal Member Base WeWork India has built a fast-growing and resilient member base, reaching 87,247 members as of June 30, 2025. Its Grade A locations, broad product suite, and strong customer focus attract enterprises, MNCs, startups, and individuals. Enterprise clients contribute ~76% of net membership fees, with no single client exceeding 10%, ensuring diversification. Importantly, upgrades from existing members drive growth—over 45% of desks sold in Q1 FY26 came from expansions. Weighted average tenure improved to 26 months overall and 31 months for large enterprises, reflecting stickiness. Case studies like Customer E (scaling from 2,400 to 5,724 desks) and Laundryheap highlight the company’s ability to provide scalable, long-term solutions that deepen client relationships and drive recurring revenues.

Peer Comparison

Key Risks & Concerns

Risk from Promoter Share Pledge One of WeWork India’s promoters, Embassy Buildcon LLP, had pledged 53.13% of the company’s pre-offer equity capital to raise funds through debentures. While all pledged shares were released as of September 2025, they must be re-pledged if the IPO does not conclude within 45 working days. Any default under the pledge agreements could allow lenders to enforce the pledge, diluting promoter shareholding and potentially disrupting business operations, strategy execution, and investor confidence.

Geographic Concentration Risk WeWork India derives a significant share of its revenues from Bengaluru and Mumbai, which together contributed 66–71% of net membership fees across FY23–FY25 and 66% in Q1 FY26. Any adverse developments in these cities—such as increased competition, regulatory changes, economic slowdown, or demographic shifts—could materially impact revenue and occupancy. While other Tier 1 cities are growing, heavy reliance on these two markets exposes the company to location-specific risks, potentially affecting growth, cash flows, and overall financial performance.

Dependence on WeWork Global Brand and Systems WeWork India’s business heavily relies on its exclusive license to use the “WeWork” brand, logo, and technology under agreements with WeWork International Limited. Any reputational issues, adverse publicity, or termination of this agreement could damage brand equity, disrupt operations, and weaken client trust. Additionally, dependence on WeWork Global’s technological platforms and prescribed global standards creates operational reliance. Future disruptions or loss of brand rights could adversely impact revenue, competitive positioning, and long-term business sustainability.

Risk from Ongoing Legal Proceedings WeWork India, along with its subsidiaries, promoters, directors, and group companies, is involved in multiple ongoing legal proceedings, including civil, criminal, tax, and regulatory cases. These matters are pending at various stages before courts and tribunals and could lead to penalties, financial provisions, or reputational damage if outcomes are adverse. Notable cases include SEBI proceedings against a promoter group entity and a criminal case involving promoters. Such litigations may divert management’s attention, increase liabilities, and impact financial performance.

Outlook and Valuation

WeWork India is well positioned to capture long-term growth in the premium flexible workspace segment, underpinned by strong demand dynamics, a proven operating model, and robust strategic backing. The top nine Tier 1 cities remain the epicenter of flexible workspace demand, with stock expanding from 35 million sq. ft. in 2020 to over 88 million sq. ft. by March 2025 and projected to grow at an 18–20% CAGR to ~140–144 million sq. ft. by 2027. Within this backdrop, WeWork India plans to deepen its presence in key micro-markets while selectively entering new cities, leveraging long-standing relationships with institutional landlords, including Embassy Group and other top developers, to secure premium Grade A assets on favorable terms. This clustering strategy strengthens brand awareness and drives operating leverage across its portfolio.

Operationally, the company continues to emphasize strong unit economics. Centers typically achieve breakeven within four to six months at occupancy levels of ~55.7%, with mature locations delivering over 40% center-level EBITDA margins. WeWork India intends to further optimize costs, improve member retention through early renewal benefits, and extend customized offerings to large enterprises and Global Capability Centres (GCCs), which represent a key growth vertical given India’s ~3,000 GCC units. With large enterprises contributing ~60% of net membership fees, the model is resilient, less price-sensitive, and offers lower acquisition costs.

The company is also diversifying revenue through innovation and value-added services. Recent launches such as WeWork Workplace (a SaaS platform), Zoapi (a cloud-based video conferencing solution), and localized digital platforms enhance member stickiness while broadening revenue streams. Ancillary revenues contributed 11.1% of FY25 operating revenue, above industry averages, with further scope to expand through catering, events, IT, and premium services. A data-driven expansion approach—using tools such as REScout for site selection and Spatial Analytics for utilization—supports better efficiency, with capex per desk reduced to Rs.146,786 in FY25 from Rs.160,648 in FY23.

Financially, WeWork India has demonstrated robust performance, with operating revenue growing at 21% CAGR between FY23–FY25 and adjusted EBITDA margin improving to 21.6%. Profitability remains under pressure with consistently declining PAT margins, largely impacted by high depreciation charges. The reported positive PAT in the current year is primarily attributable to a deferred tax gain of Rs. 2,857 million. Supported by a net cash flow-positive model, strong enterprise base, premium pricing, and brand equity, the company is expected to sustain growth momentum. While risks include geographic concentration, dependence on WeWork Global branding, and legal proceedings, WeWork India’s leadership, Embassy Group backing, and scale advantage provide resilience. With India’s office absorption remaining strong, the company is poised to consolidate its leadership as the country’s most profitable flexible workspace operator. Competition intensity is high in the coworking space sector. WeWork India Management is valued at 6.7x based on post issue Q1FY26 annualised EV/EBITDA , calculated based on the upper price band. We believe issue is fairly priced. Currently, we advise an AVOID rating for this issue we will add WeWork to our long-term conviction list once it demonstrates consistent business performance in the upcoming quarters.