IPO-bound WeWork India posts Rs 14.14 cr loss in Q1, revenue rises 19% to Rs 535 cr

New Delhi: Co-working major WeWork India, which is launching its Initial Public Offering (IPO) this week, has posted a loss of Rs 14.14 crore in the first quarter of this fiscal despite growth in revenue amid strong office demand.

The company's loss stood at Rs 29.17 crore in the year-ago period.

WeWork India's revenue from operations increased 19 per cent to Rs 535.31 crore during April-June quarter of this fiscal from Rs 448.65 crore in the corresponding period of the preceding year, according to its latest Red Herring Prospectus (RHP) filed with SEBI.

During the entire 2024-25 fiscal, the company's profit stood at Rs 128.18 crore over a turnover of Rs 1,949.21 crore.

Founded in 2017, WeWork India operates under an exclusive license of the WeWork brand. Currently, Bengaluru-based real estate firm Embassy Group holds about 76.21 per cent in WeWork India, while WeWork Global owns 23.45 per cent.

On Monday, WeWork India announced a price band of Rs 615-648 per share for its upcoming Rs 3,000 crore Initial Public Offering (IPO). At the upper end, the company is valued at around Rs 8,685 crore.

The issue will open for public subscription on October 3 and close on October 7.

The IPO, which is entirely an Offer For Sale (OFS) of up to 4.63 crore equity shares, will see the promoter group entity, Embassy Buildcon LLP, and investor 1 Ariel Way Tenant Ltd (part of WeWork Global) divest their stakes.

The proposed IPO is worth Rs 3,000 crore at the upper end.

Since the issue is an OFS, WeWork India will not receive any proceeds from the issue and the funds will go entirely to the selling shareholders.

In its draft papers, WeWork India stated that the objective of the offer is to achieve the benefits of listing its equity shares on the stock exchanges. The company expects the listing to enhance visibility, provide liquidity to existing shareholders, and establish a public market for its stock in India.

WeWork Global had invested USD 100 million in 2021, while in January 2024, the company raised Rs 500 crore through a rights issue to reduce debt and support expansion.

At present, WeWork India operates across Tier-1 cities, including Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, Noida, Delhi, and Chennai, managing 77 lakh sq. ft of space, of which 70 lakh sq ft is operational, with a desk capacity of 1.03 lakh.