IPO closes on 7 Oct'25
WeWork India Management Ltd
Minimum Investment
₹ 14,904 / 23 shares
Our Verdict:
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- WeWork India Management Ltd (WeWork India) has established itself as the leading premium flexible workspace operator in the country, consistently ranking as the largest player by revenue over the past three fiscal years. The company has demonstrated strong topline and EBITDA growth, with a notable turnaround to profitability in FY25.
- That said, occupancy levels and renewal rates have shown a declining trend in recent years—a key risk to monitor. While such fluctuations are inherent to the sector, WeWork India’s clustering strategy, tech-driven efficiencies and strong promoter backing place it in a better position than peers to weather these pressures.
- On the valuation front, the IPO appears reasonably priced, trading at a Price-to-Earnings (P/E) multiple of ~65x on FY25 earnings. While this is at the higher end of the spectrum, it is supported by the company’s scale, brand strength and operational efficiency.
- The broader industry outlook remains favourable. India’s flexible workspace sector has grown rapidly from 35 million sq.ft. in 2020 to over 88 million sq.ft. by March 2025. Structural tailwinds—driven by hybrid work adoption and corporates’ preference for flexible, asset-light solutions—are expected to sustain robust demand.
- WeWork India’s premium positioning and strong brand visibility provide it with a competitive edge to capture this market expansion. While near-term listing gains may be limited—given historical trends of modest debuts by peers such as Awfis, Indiqube, DevX and Smartworks—the medium-to-long-term growth prospects appear compelling.
- Considering these factors, the IPO is best suited for investors with a long-term horizon, offering an opportunity to participate in the structural growth story of India’s flexible workspace industry.
About the company
Founded in
13 May'16
Managing director
Karan Virwani
- WeWork India has quickly positioned itself as a leading player in the flexible workspace segment. Headquartered in Bengaluru, the company has expanded its footprint across major metro hubs including Bengaluru, Mumbai, Gurugram, Hyderabad, Pune, Noida, Delhi and Chennai. Its product suite spans shared desks, private offices, customized headquarters, and value-added offerings such as enterprise-grade tools, events, and community networking—distinguishing it from traditional leasing models.
- As of June 2025, WeWork India operates 68 centres with a portfolio of over 1,14,077 desks, covering 7.67 million square feet of leasable area. Beyond core office spaces, the company leverages ancillary services like meeting rooms, event venues, and digital solutions to enhance client engagement, generate incremental revenues, and reduce churn—further strengthening its market leadership.
STRENGTHS
- Exclusive Global Brand Advantage: Through its exclusive license with WeWork Global—one of the world’s largest flexible workspace operators with ~600 locations across 35 countries—WeWork India benefits from strong brand recognition. This global presence helps attract multinational enterprises accustomed to the WeWork experience worldwide. Backing from Embassy Group, a leading Indian real estate developer, further strengthens its positioning.
- Efficient Capital & Asset Utilization: Strategic partnerships have enabled capital efficiency, premium property access and balance sheet discipline. This has translated into revenue-to-rent multiples of 2.68—the highest in the industry—outperforming the benchmark range of 1.9 to 2.5, underscoring efficient asset monetization.
- Financial Performance: Between FY23 and FY25, WeWork India’s operating revenue grew at a CAGR of 22%, while EBITDA rose by 25% (adjusted EBITDA growth of 48%). The company achieved a strong turnaround, moving from a net loss of Rs 135.77 crore in FY24 to a net profit of Rs 128.19 crore in FY25.
- Healthy Profitability Metrics: EBITDA margins have consistently remained above 60%, reflecting disciplined cost management and operational efficiency.
- Improving Monetization per Member: Average Revenue per Member/Billed Desk (ARPM) increased from Rs 17,096 in FY23 to Rs 19,842 in FY25, driven by cross-selling opportunities and premium positioning.
RISK FACTORS
- Declining Occupancy Levels: While still at healthy levels, occupancy rates at both operational and mature centres have been consistently declining—from 83.78% in FY23 to 76.79% in FY25 for operational centres, and from 88.18% to 80.69% for mature centres.
- Client Attrition & Lower Renewal Rates: The client base reduced from 2,315 in FY23 to 2,198 in FY25, with renewal rates falling from 79.24% to 74.66% over the same period, reflecting pressure on client retention.
- Promoter-Related Proceedings: The Enforcement Directorate initiated proceedings in 2014 under the Prevention of Money Laundering Act, 2002 against Jitendra Mohandas Virwani, Promoter and Chairman of the company. Any adverse outcome could negatively impact the company’s reputation and operations.
- Profitability Concerns: Despite generating positive operating cash flows, WeWork India has reported net losses for FY23, FY24 and the 3 months ended June 2025. Continued losses could weigh on future financial performance.
- Geographic & Client Concentration: For the 3 months ended June 30, 2025, and FY25, Bengaluru and Mumbai centres accounted for 66% and 70% of Net Membership Fees, respectively. Additionally, large enterprise clients (with over 300 desks across multiple centres) contributed 41% and 40% of Net Membership Fees during the same periods. Dependence on specific cities and a concentrated client base heightens vulnerability to adverse developments or contract terminations.
- Outstanding Legal Proceedings: WeWork India, its subsidiaries, promoters and key managerial personnel are involved in ongoing legal proceedings amounting to Rs 325 crore. Any unfavorable judgment could materially affect operations, reputation and financial performance.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 3,000 crore
Fresh Issue
₹ -
OFS
₹ 3,000 crore
Price range
₹ 615 - 648
Lot size
23 shares
Issue Objective
This issue is entirely an Offer for Sale (OFS), meaning the company itself will not receive any funds from the proceeds. Instead, all proceeds will go directly to the selling shareholders.
Dates
Bidding open
3 Oct'25
Bidding close
7 Oct'25
Allotment date
8 Oct'25
Refund date
9 Oct'25
Listing
10 Oct'25
IPO Reservations
Qualified institutional buyers
>75%
Non-institutional investors
<15%
Retail individual investors
<10%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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