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WeWork India, a leading provider of flexible workspace solutions, is undergoing a significant change. Enam Holdings, a financial services group led by Akash Bhansali and his family members, is taking the center stage by acquiring a substantial stake in the company.
Enam Holdings, through an investor group they are leading, will acquire a 40% stake in WeWork India for INR 1,200 crore (USD 145 million) through a secondary share sale. This move demonstrates Enam's confidence in the potential of the Indian flexible workspace market, estimated to grow to a 12% share of the overall commercial office space market by 2028, up from 7% in 2023 (as per Avendus Capital). The exact composition of the consortium beyond Enam Holdings is not publicly confirmed, but reports suggest it may include Enam Group's family office, investment fund A91 Partners, and CaratLane founder Mithun Sacheti.
While Enam Holdings takes a significant stake, WeWork India's current majority owner, the Bangalore-based Embassy Group, will be acquiring the entire 27% stake held by WeWork Inc., the US-based parent company, for approximately INR 700 crore (USD 85 million). This move marks WeWork Inc.'s exit from the Indian market, which comes in contrast to the strong performance of WeWork India.
WeWork Inc.'s decision to exit India comes amidst contrasting fortunes for the company globally and its Indian subsidiary. While WeWork Inc. filed for Chapter 11 bankruptcy in the US in November 2023, WeWork India has shown impressive growth. They have a member base exceeding 70,000, which grew by 18% during FY24, and maintain a healthy average occupancy rate of 82%. This positive performance by WeWork India, which currently operates over 90,000 desks across 8 million square feet of office space in seven major cities, is a key factor driving the restructuring and attracting new investors like Enam Holdings.
The restructuring, with a total deal value of INR 2,100 crore (USD 230 million), signifies a renewed commitment to the Indian flexible workspace market. With Enam Holdings' investment and Embassy Group's continued leadership, WeWork India is well-positioned to capitalize on the growing demand for flexible workspaces. They are aiming to expand their footprint further, targeting an additional 1.8 million square feet by the end of the year, which includes adding 18 new buildings to their portfolio. WeWork India, under this new leadership structure, is set to play a major role in the future of flexible workspaces in India.
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