WeWork Inc.’s departure from its local co-working unit, WeWork India Private Limited, was approved by the Competition Commission of India (CCI) on Tuesday.
The CCI states that the exit will feature the following structures. While Embassy Buildcon will purchase the OAW, Real Trustees will purchase a portion of WeWork India’s share capital.
Approximately 70% of WeWork India is currently owned by the Embassy Buildcon group.
Volrado Ventures, alternative investment funds (AIFs) registered with the Securities and Exchange Board of India, are supervised by Real Trustee. In the meanwhile, residential and commercial real estate development, along with other associated activities, are the activities of Embassy Buildcon, a limited liability partnership registered in India.
In November of last year, WeWork Inc. filed for Chapter 11 bankruptcy in the US. The business now emerged from bankruptcy, having paid off $4 billion of debt. John Santora has been appointed as the new CEO of WeWork Inc. in the meantime.
In the fiscal year that ended in March 2023, WeWork India, which is run by the real estate company Embassy Group, with its headquarters in Bengaluru, maintained a healthy scale and controlled losses. From Rs 784 crore in FY22 to Rs 1,314 crore in the aforementioned fiscal year, its revenue increased by 67.6%. In addition, the company’s losses in FY23 plummeted to Rs 146 crore, a 77.29% decline.
Awfis, a rival of WeWork, went public recently and reported revenue of Rs 616 crore for the first nine months of FY24, with a slight loss of Rs 19 crore during the same time frame. 91 Springboard, AltF, OfficePass, and a few more are some of its rivals.
