‘WeWork Build­ings Turned Prof­itable in Six Months in In­dia’

The Economic Times - - Companies: Pursuit Of Profit - Sa­gar.Malviya @times­group.com

Mum­bai: The In­dian unit of shared workspace provider WeWork said all its build­ings have be­come prof­itable in the first six months of op­er­a­tions though it posted net loss of ₹ 76 crore at the com­pany level in FY18. The New York-head­quar­tered col­lab­o­ra­tive workspace firm’s In­dian arm notched rev­enues of ₹ 58.2 crore, as per fi­nan­cials sourced from Regis­trar of Com­pa­nies. With 8,800 desks un­til March last year, a back-of-the-en­ve­lope cal­cu­la­tion shows that each desk earned rev­enues of about ₹ 66,000 but lost ₹ 88,000 per desk on an av­er­age.

“All build­ings are prof­itable and cash flow pos­i­tive within six months, and build­ings have hit over 90% oc­cu­pancy within six months of open­ing,” said Karan Vir­wani, chief WeWork ex­ec­u­tive of­fi­cer, WeWork In­dia. “We are fo­cused on growth for the next few years and will con­tinue to in­vest in grow­ing our mem- ber base and fur­ther in­crease our pres­ence in the coun­try.” WeWork en­tered In­dia in late 2016 through a joint ven­ture with Bengaluru-based real es­tate de­vel­oper Em­bassy Group. It started op­er­a­tions in July 2017 with the first cowork­ing of­fice space in Bengaluru. In 2017-18, the com­pany com­pleted six build­ings across Mum­bai, Gur­gaon and Bengaluru. By the end of cur­rent fis­cal, it will have a port­fo­lio of 3,700 desks across the three mar­kets with plans to reach a desk count of 1.15 lakh by en­ter­ing newer mar­kets such as Pune, Hyderabad, Delhi and Chen­nai by 2019-20, it said in the reg­u­la­tory fil­ings.

“We don’t be­lieve we have scratched even the sur­face. We have 35,000 desks, so rev­enue has grown sig­nif­i­cantly in a very short pe­riod of time,” Vir­wani added.

All build­ings cash flow pos­i­tive, touch over 90% oc­cu­pancy, says top ex­ec­u­tive

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