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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.

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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.

Exclusive: Cleantech firm Hygenco raises Rs 50 Cr debt

EntrackrEntrackr · 7m ago
Exclusive: Cleantech firm Hygenco raises Rs 50 Cr debt
Medial

Cleantech startup Hygenco has raised Rs 50 crore (approximately $6 million) via non-convertible debentures from Trifecta. This is the first debt investment for the Gurugram-based company this year. The board at Hygenco has passed a special resolution to issue 500 debentures at an issue price of Rs 1,00,000 each to raise Rs 50 crore, its regulatory filing sourced from the Registrar of Companies shows. The aforementioned dentures are issued for a tenure of 24 months and carry an interest rate of 14.5% per annum, the filing added. Hygenco specializes in developing and deploying commercial systems for green hydrogen and ammonia production. Its solutions cater to large-scale process industries, marine and terrestrial transportation, and personal mobility sectors. Hygenco secured its first investment of $25 million from the SBI through (Neev II Fund) in October 2022. Media reports suggest the company aims to raise a total of $100 million by the end of this year. The company also partnered with Jindal Stainless to set up the country's first green hydrogen plant. According to startup data intelligence platform TheKredible, SBI, through its Neev II Fund, holds a 49.6% stake in Hygenco. The company's co-founders—Amit Bansal, Anshual Gupta, and Aashish Gupta—collectively own 46.1% of the company. The company was in the pre-revenue stage till the financial year ended March 2023 with a loss of Rs 6.3 crore. Hygenco has yet to file annual results for the previous fiscal year (FY24).

Workplace solutions firm IndiQube to file draft papers for ₹800 cr IPO next week | Company Business News

LivemintLivemint · 7m ago
Workplace solutions firm IndiQube to file draft papers for ₹800 cr IPO next week | Company Business News
Medial

IndiQube, a workplace solutions company based in Bengaluru, is set to file for an IPO to raise ₹800 crore. The IPO will consist of a fresh issue and an offer for sale by the promoters, with the fresh issue component expected to be around ₹700 crore. The majority of the funds raised will be used for capital expenditure on new centers, while some will go towards debt repayment. IndiQube's portfolio includes 7.7 million sq ft across 14 cities, and its clients range from Indian conglomerates to startups and Fortune 500 companies. Its competitors in the flexible workspace sector include WeWork India, Smartworks, Awfis Space Solutions, and Table Space.

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