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Indian Co-working startup WeWork raises ₹200 crores, aims to be profitable this year

On Monday, an Indian Co-working space startup said- it has raised INR 200 crores from a bunch of investors, via a mix of debt and equity shares. 

The company stated that last year wasn’t a booster for revenue but the challenging period bounced back and rotated to adapt fairly via new flexible product offerings. And thus, it is aiming for more profits in 2021. 

WeWork is a company, who offers services of arrangements in which workers of different firms, freelancers, and more can share an office space, allowing cost savings, and convince via the use of the common infrastructure with all needed amenities such as devices, connectivity, and more to let people work seamlessly like any other working space or office. 

The Chief Executive Officer of WeWork Karan Virmani said in a recent statement- “The new capital we have raised will help us in continuing our upwards momentum and truly explore the potential of flexible workspaces in the Indian market”. 

Recently, WeWork India said it sold around 10,000 desks during the January- March quarter, declaring its most successful sales quester till date”. 

It faced a quite slow absorption for commercial real estate with 5.53 million sq ft leased in quarter 1 in 2021. But right after that firm remained bullish with driving sales and net absorption, with more than 7 lakh sq ft area being sold quickly. The sales were over 10 percent of the total leasing in the market. 

The CEO added- “While last year was challenging for the industry, we have seen a steady uptick in demand from members of all sizes, and we will continue to remain bullish and focus on the growth of flexible workspaces in the country”. 

Moreover, the statement said- “we are poised for sustainable long-term growth and are aiming for profitability in 2021. Our focus remains on providing a wide range of flexible offerings to meet our members’ evolving needs”. 

The firm stated that over the last year it has also seen strong demand from firms, who are now looking at flexible workspaces. They are like a viable long-term real estate option. 

With the latest WeWork portfolio seeing a 10 percent rise to now constitute 60 percent enterprise members, as well as facilitating the initiation of its new co-working spaces namely- Embassy Manyata NXT, Bengaluru. 

The firm also stated- “it agreed with Indian American Vivek Ranadive led blank check film BowX Acquisition Corp. it offers for a business combination that will result in the co-operative working space, and the firm becoming a publicly listed firm. 

Moving further with the transaction figure, it values WeWork at an initial firm value of roughly $9 billion, WeWork stated in the recent word. 

Co-working spaces are new go-to solutions with the rising freelancers, open culture of working. With ongoing cultural changes and working trends, co-work is also making its full impact in the Indian Marketplace. 

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