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Co-working space firm WeWork India reports 77% reduction in losses to Rs 146.8 crore in FY23

IndianStartupNewsIndianStartupNews · 1y ago
Co-working space firm WeWork India reports 77% reduction in losses to Rs 146.8 crore in FY23
Medial

WeWork India has reported significant financial growth despite its global parent's bankruptcy filing. The company saw a 67.58% increase in revenue and a 77% reduction in losses for FY23. The primary revenue source was leasing office spaces, accounting for 72% of total revenue. WeWork India's ability to meet financial obligations and sustain growth is supported by continued funding from shareholders, particularly the Embassy Group. Despite competition in the co-working space sector, the company's strategic management and market adaptability position it for continued success. Controlling rental escalations and maintaining a competitive edge will be key challenges moving forward.

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WeWork India posts Rs 1,314 Cr revenue in FY23; cuts losses by 77%

EntrackrEntrackr · 1y ago
WeWork India posts Rs 1,314 Cr revenue in FY23; cuts losses by 77%
Medial

WeWork India has remained islanded from the turmoil at its US counterpoint, which filed for bankruptcy recently. WeWork India’s scale grew to over Rs 1,300 crore in the fiscal year ending March 2023. Significantly, it also narrowed down losses by 77% in the same period. WeWork India is operated by Bengaluru-based real-estate firm Embassy Group, which holds over 70% stake in the Indian avatar of the co-working firm. Embassy also holds the rights to use the WeWork brand name in India. WeWork India’s revenue from operations surged by 67.6% to Rs 1,314 crore in FY23 from Rs 784 crore in FY22, its consolidated financial statements filed with the Registrar of Companies show. Income from leasing office spaces was the primary source of revenue for WeWork accounting for 72% of the total revenue, which increased by 47.6% to Rs 942 crore in FY23. The rest of the income came from services fees and other allied services. See TheKredible for the detailed revenue breakup. WeWork India’s chief revenue officer Clifford Lobo told Entrackr that in the past year the firm has seen steady demand for its flexible workspace solutions. Moving over to the cost side, its depreciation and interest expense formed 67% of the overall cost and cumulatively stood at Rs 1,050 crore in FY23. Notably, a significant portion of this amount, Rs 883 crore was associated with leasing costs which the company spread year-on-year in the form of interest leasing and assets utilization. WeWork India’s employee benefits, rent, repair, information technology, management, advertising, and other overheads took its total expenditure up by 6% to Rs 1,570 crore in FY23. Check TheKredible for the complete expense breakup. Expense Breakdown Total ₹ 1480 Cr https://thekredible.com/company/wework/financials View Full Data To access complete data, visithttps://thekredible.com/company/wework/financials Total ₹ 1570 Cr https://thekredible.com/company/wework/financials View Full Data To access complete data, visithttps://thekredible.com/company/wework/financials Employee benefit Employee benefit Power and fuel Power and fuel Rent and repairs Rent and repairs Information technology Information technology Advertising promotional Advertising promotional Common area maintenance charges Common area maintenance charges Interest on lease and borrowing Interest on lease and borrowing Depreciation and amortisation Depreciation and amortisation Others To check complete Expense Breakdown visit thekredible.com View full data The impressive scale and controlled expenditure helped WeWork to reduce its losses by 77.3% to Rs 146 crore in FY23 from 643 crore in FY22. Its ROCE and EBITDA margin improved to -41% and 1.4% respectively. On a unit level, it spent Rs 1.19 to earn a rupee in FY23. “…Improving risk management and portfolio strategies has played a crucial role in boosting our margins in the last fiscal,” Lobo explained when asked about the factors driving the better bottom line during FY23. Demand for coworking space is gradually increasing in India, with studies projecting the market to be worth nearly $3 billion by 2029 at a CAGR of 7%. Besides WeWork, several companies such as 91 Springboard, Awfis, and Mumbai Coworking are looking to tap into this segment. FY22-FY23 FY22 FY23 EBITDA Margin -46% 1.4% Expense/Rupee of ops revenue ₹1.89 ₹1.19 ROCE -232% -41% Among the notable competition, Awfis has been among the frontrunners in the domain. Its revenue from operations surged 2.1X to Rs 545 crore during the fiscal year ending March 2023 as compared to Rs 257 crore in FY22. However, the losses of the firm declined by 18.67% to Rs 46.6 crore in FY23. It also shared quarterly results for April-June 24, wherein the revenue stood at Rs 187.7 crore while losses stood at Rs 8.3 crore. Moreover, Awfis has filed its draft red herring prospectus (DRHP) with the Security Exchange Board of India (SEBI) for an initial public offering (IPO). At almost $115 million, WeWork India is comfortably the leader of the pack in the segment, and seems well on its way to breakeven. In this case, the parent firm could have learnt a lesson or two from the Indian subsidiary, on cost controls and operations. Having an established real estate player in the commercial segment as partner has helped no doubt as the Embassy group has proven. Going ahead, the firm’s challenge remains controlling significant escalations in rentals for its customers, as the market remains competitive. While WeWork has an advantage with its premium position in most segments, it does face a real challenge from existing as well as upcoming firms. Real estate by its very nature is regional, and the co-working space has also thrown up many competent firms that are strong in just a single city, for instance. To that extent, sharpening the brand’s edge remains key for the future in many ways.

WeWork India raises Rs 500 Cr via rights issue

EntrackrEntrackr · 6m ago
WeWork India raises Rs 500 Cr via rights issue
Medial

WeWork India, a flexible workspace operator in India, has raised Rs 500 crore (around $57.8 million) via a rights issue. The proceeds will be used for the repayment of debt, strengthening the company’s pathway to being debt-free, and reducing our cost of capital. WeWork India is currently operational across eight cities, with over 1 lakh desks, with relationships across key stakeholders such as landlords, International Property Consultants (IPCs), and members. Since its inception in India in 2016, WeWork India has expanded across 63 operational centers in Chennai, New Delhi, Gurugram, Noida, Mumbai, Bengaluru, Pune, and Hyderabad. WeWork India’s revenue from operations grew 26.7% to Rs 1,665 crore in the fiscal year ending March 2024 as compared to Rs 1,315 crore generated in the previous fiscal year, as per the company’s consolidated financial statements filed with the Registrar of Company. WeWork, the once high-flying co-working space provider, faced significant challenges in 2023 and 2024. In November 2023, the company filed for Chapter 11 bankruptcy in the US, however, it managed to emerge from bankruptcy after a few months. Despite these challenges, WeWork India is now eyeing an IPO, aiming for a valuation of $2-2.5 billion. Awfis became the first Indian co-working startup to list on the stock exchange, while Smartworks secured SEBI approval for its IPO. Other co-working companies like Simpliwork, Table Space, DevX, and Indiqube are also planning IPOs.

Smartworks raises more than $20 Mn from Keppel and others

EntrackrEntrackr · 1y ago
Smartworks raises more than $20 Mn from Keppel and others
Medial

Co-working space solutions provider Smartworks has raised Rs 168 crore ($20.24 million) from a group of investors including Keppel, Ananta Capital Ventures Fund I, Plutus Capital, family trusts, and HNIs. The capital from the fundraise will be deployed towards growth and expansion of the business and meet general corporate expenses, Smartworks said in a statement. To date, the co-working space firm has raised over $50 million, including a $25 million raise from the Singapore-based Keppel Land in 2019. Smartworks provides managed office spaces by leasing properties from real estate developers and subsequently subleasing them to enterprises or companies. The company has a presence across Delhi-NCR, Kolkata, Bengaluru, Chennai, Pune, Hyderabad, and others. As of March 2024, Smartworks has a presence in as many as 13 cities including Bengaluru, Kolkata, Delhi NCR, Mumbai, and Pune, and a portfolio of 41 centers spanning across 8 million square feet. As per startup data intelligence platform TheKredible, NS Niketan LLP, which includes founder Neetish Sarda, among others, controls more than 45% stake in the company as of the last funding round. Smartworks also said that promoters continue holding majority shareholding in the company. Smartworks’ revenue from operations surged 97.5% to Rs 711 crore in FY23 from Rs 360 crore in FY22. The firm also saw a 44.29% surge in losses which rose to Rs 101 crore in FY23 as compared to Rs 70 crore in the previous fiscal year. Recently, co-working firm Awfis got listed on the stock exchange and became the first company from this space to do so.

Flex spaces boom as the office goes to the employee

LivemintLivemint · 8m ago
Flex spaces boom as the office goes to the employee
Medial

Indian flexible space providers, such as Awfis Space Solutions, WeWork India, IndiQube, and Urban Vault, have experienced significant revenue growth since the pandemic. The demand for alternative workspaces closer to employees has risen among corporates, startups, and professionals. The flexible office segment, including co-working and managed workplaces, has witnessed expansion, with capacity additions of 8-9 million square feet each in 2022 and 2023. This growth has prompted many space providers to go public, including Awfis, Smartworks Coworking Spaces, WeWork India, Simpliwork Offices, IndiQube, and Table Space Technologies. Global capability centres, along with traditional IT services and business process management, are driving the demand for co-working and managed workplaces.

Table Space revenue spikes 2X to Rs 780 Cr in FY23; stays profitable

EntrackrEntrackr · 1y ago
Table Space revenue spikes 2X to Rs 780 Cr in FY23; stays profitable
Medial

Co-working space solutions provider Table Space has demonstrated solid financial performance in the last fiscal year as the company’s operating scale grew over 97% and neared the Rs 680 crore revenue mark. At the same time, the Bengaluru-based firm remained profitable during FY23. Table Space’s revenue from operations jumped to Rs 678.5 crore in the fiscal year ending March 2023 from Rs 344 crore in FY22, its consolidated financial statements filed with the RoC show. Founded by Amit Banerji in 2017, Table Space provides customized coworking spaces and claims to have a capacity of more than 10 million square feet with 75 plus centers in over 7 cities including Bengaluru. Rental and lease income formed 75% of the total operating revenue which saw a growth of 69% to Rs 512 crore in FY23 from Rs 303 crore in FY22. Facility management, common area maintenance, and sale of food and beverages were some other revenue drivers for the company. Table Space also earned Rs 90 crore from non-operating activities which tallied its total income to Rs 768.5 crore during the last fiscal year (FY23). See TheKredible for the detailed revenue breakup. Its finance and depreciation costs, concerning the lease accounted for 59% of the overall expenditure which surged 2X to Rs 414 crore in FY23. Table Space’s employee benefits, repair cum maintenance, advertising, legal professional, rent and other overheads catalyzed its overall expense up by 118% to Rs 703.8 crore in FY23 from Rs 321.6 crore in FY22. Head to TheKredible for the complete expense breakdown. The decent scale and two-fold growth in other income helped Table Space to increase its profits marginally to Rs 45.9 crore in FY23 from Rs 44.5 crore in FY22. Its ROCE and EBITDA margin stood at 9% and 62.3%. The company spent Rs 1.04 to earn a rupee in FY23. Table Space has raised around $330 million across several rounds including a $300 million round from Hillhouse. According to the startup data intelligence platform TheKredible, Hillhouse is the largest stakeholder with 31.49%. Its core team including Amit Banerji, Karan Chopra, Srinivas Prasad, and Narendra Kumar Kamaraju commands 56.48% of the company. The company competes with the likes of Smartworks, Awfis, IndiQube, WeWork and others. Table Space continues the trend of co-working platforms delivering strong growth, even as it has seen margins shrink at the same time. But being profitable matters, and the firm is poised to benefit all the more from the growth momentum thanks to that. However, the high income from non operating activities might also not be sustainable, which will put further pressure on the bottomline. All out growth versus well considered growth is still a much better problem to have than growth versus survival, however.

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