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WeWork India Management 

• WeWork India Management is coming out with a 100% book building; initial public offering (IPO) of 4,62,96,296 shares of 10 each in a price band Rs 615-648 per equity share.
• Not more than 75% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 10% for the retail investors.
• The issue will open for subscription on October 3, 2025 and will close on October 7, 2025.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 10 and is priced 61.50 times of its face value on the lower side and 64.80 times on the higher side.
• Book running lead managers to the issue are JM Financial, ICICI Securities, Jefferies India, Kotak Mahindra Capital Company and 360 ONE WAM.
• Compliance Officer for the issue is Udayan Shukla.

Profile of the company

WeWork India Management is a leading premium flexible workspace operator in India and has been the largest operator by total revenue in the past three Fiscals. It has played a significant role in the growth of the flexible workspace sector in India and been a key contributor for the evolution of flexible workspace products and services. It is the exclusive licensee of the WeWork Brand in India. The company provides flexible, high-quality workspaces to its customers (who it refers to as members) which include companies of all sizes: large enterprises, small and mid-size businesses, startups, as well as individuals. It has established multi-asset relationships with various prominent developers across major Tier 1 cities. It leases primarily Grade A office space from such developers and it designs, builds and operates them as flexible workspaces as per global standards.

Its amenitized and technologically integrated workspaces come with shared amenities including meeting rooms, event spaces, printing, mail and packaging, wellness rooms and recreational spaces. It provides complete facility management services, pantry services, security and housekeeping, making it convenient for businesses to work in a fully-serviced office environment equipped with high-speed internet. Beyond office space, the company creates a sense of community through modern design, collaborative environment, dedicated member experience teams, and curated activities that help businesses and their employees feel connected to their workplace.

It operates in India’s key office markets - Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, Noida, Delhi, and Chennai. Tier 1 cities have witnessed healthy demand for office space due to their talent pools, infrastructure, job opportunities and relative business growth potential, and these markets have exhibited strong market dynamics with office absorption in 2024 at 78.9 million square feet, as compared to supply completion of 49.0 million square feet in the same year. Further, gross absorption for these markets in 2025 is forecasted to be 85.5 million square feet.

Proceed is being used for:

• Carrying out the offer for sale of Equity Shares of face value of Rs 10 by the Selling Shareholders
• Achieving the benefits of listing the equity shares on the stock exchanges

Industry Overview

Flexible workspace solutions primarily refer to fully furnished and serviced real estate offerings provided by flexible workspace operators to end users with potential flexibilities built-in around aspects including but not limited to space design, tenure, area, locations and product. Multiple leading operators have also now developed the capability to offer multiple value-added and ancillary products and services. The flexible workspace stock in India currently stands over 96 million sq.ft. as of Q1 CY 2025. While around 90% of this flexible workspace stock is spread across key tier 1 markets of India, the demand for flexible workspaces in Non-Tier 1 cities has also been growing. Tier 1 cities in India account for over 88 Mn sq.ft. of the total flexible workspace stock in India (Q1 CY 2025). The flexible workspace stock across tier 1 markets is forecast to keep growing at least in the near term in response to end user demand.

The flexible workspace stock in Tier 1 cities stands over 88 Mn Sq. ft. as of Q1 CY 2025.The stock grew from more than 35 Mn Sq. ft. by the end of CY 2020 to over 82 Mn Sq. ft. by the end of CY 2024, at a CAGR of approximately 23-24%. The 28 key clusters identified across Tier 1 cities account for around 80% of total flexible workspace stock in these cities. The majority of the flexible workspace demand is attributed to these top 9 cities and key clusters in India. Bengaluru currently is both the largest commercial office and flexible workspace market of India accounting for around 30% of the total flexible workspace stock in Tier 1 cities. While hubs like Bengaluru, Pune, Hyderabad, Gurugram and Mumbai continue to be popular markets for flexible workspace operators, markets like Noida & Chennai have also gained traction in response to the end-user interest.

Flexible workspace stock addition by operators has witnessed growth over the years and approximately 18 - 22 Mn sq. ft. of stock was added in 2024, highest annual stock addition in a calendar year. Features and benefits such as flexibility, capital efficiency, cost optimization, employee well-being and operational outsourcing are some of the key demand drivers of flexible workspace solutions amongst both startups and enterprises. Through a widespread network of centres across the country and with the assistance of various in-house or aggregator owned hybrid digital products, leading flexible workspace operators may possess the ability to support various organizations in a more effective implementation of their hybrid and distributed working policies.

Pros and strengths

Strong brand recognition and leadership in India and international presence: As a pioneer in the flexible workspace sector, the company consistently recorded the highest search volume throughout October 2023 to December 2024 (being 4 times that of its closest competitor in the period of October 2023 to September 2024, and 3.5 times its closest competitor in 2024), which underscores its strong brand recognition and leadership in India. For the period of October 2023 to September 2024, WeWork India had 0.87 times the search volume for “coworking”, and 1.48 times the search volume for “office space”. The company has played a significant role in the growth of the flexible workspace sector in India and been a key contributor for the evolution of flexible workspace products and services.

Leadership in a rapidly growing market: The company is a leading premium flexible workspace operator in India and have been the largest operator by total revenue in the last three Fiscals. Its total income increased by 22.10% from Rs 14,227.74 million in Fiscal 2023 to Rs 17,371.64 million in Fiscal 2024, and also increased by 16.51% from Rs 17,371.64 million from Fiscal 2024 to Rs 20,240.01 million in Fiscal 2025, and increased by 18.30% from Rs 4,612.85 million in the three months ended June 30, 2024 to Rs 5,457.13 million in the three months ended June 30, 2025. Its revenue from operations increased by 26.67% from Rs 13,145.18 million in Fiscal 2023 to Rs 16,651.36 million in Fiscal 2024, and also increased by 17.06% from Rs 16,651.36 million in Fiscal 2024 to Rs 19,492.11 million in Fiscal 2025, and it increased by 19.32% from Rs 4,486.51 million in the three months ended June 30, 2024 to Rs 5,353.10 million in the three months ended June 30, 2025.

Presence in Grade A properties in top-tier micro markets: The company has established multi-asset relationships with various prominent developers across major Tier 1 cities. The company offers high quality workspaces by designing, building and operating them to global standards, and as at June 30, 2025, Grade A properties accounted for approximately 94% of its portfolio, or 7.07 million square feet. Its Centres are located in Tier 1 cities in India - Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, Noida, Delhi, and Chennai. Tier 1 cities have witnessed healthy demand for office space due to their talent pools, infrastructure, job opportunities and relative business growth potential, and these markets have exhibited strong market dynamics with office absorption for the year ended December 2024 at 78.9 million square feet, as compared to supply completion of 49.0 million square feet in the same period.

One of the most extensive range of products and services in the industry: The company has one of the most extensive range of products and services in the flexible workspace industry in India, offering a wide variety of flexible workspace solutions including enterprise office suites, customized managed offices, private offices, co-working spaces, hybrid digital solutions and offering flexible lease terms that range from pay-per-use options to long-term contracts in its amenitized and technologically integrated Centres. It offers high quality workspaces by designing, building, and operating them to global standards. This makes it amongst the preferred options for both domestic and international corporations. The company’s members have the flexibility to scale their workspaces up and down as needed, and the ability to use space by the day, by the month or for multiple years, with the ability to book office space seamlessly through the WeWork app.

Risks and concerns

Significant portion of Net Membership Fees comes from limited customers: The company has garnered majority of Net Membership Fees from its top 10 Clients. For the three months ended June 30, 2025 and 2024, and in Fiscals 2025, 2024 and 2023, it derived 23.15%, 26.39%, 24.01%, 24.90% and 25.09% of its Net Membership Fees from its top 10 Clients respectively. The loss of one or more of its top Clients could have an adverse effect on its business and results of operations.

Significant revenue comes from Clients with over 300 desks across multiple Centres and cities: The company generated 40.59%, 38.42%, 39.91%, 35.56% and 33.81% of its Net Membership Fees for the three months ended June 30, 2025 and 2024, and for Fiscals 2025, 2024 and 2023, respectively, from Clients with over 300 desks across multiple Centres and cities. It may be difficult for it to find suitable replacements upon termination of agreements with such members, which could adversely affect its business, cash flows, results of operation and financial performance.

Geographical constrain: During the three months ended June 30, 2025 and 2024, and Fiscals 2025, 2024 and 2023, it derived Rs 3,050.21 million, Rs 2,804.61 million, Rs 11,811.66 million, Rs 10,039.02 million and Rs 8,127.18 million, comprising 66.25%, 70.02%, 70.04%, 68.80% and 71.04% of its Net Membership Fees, respectively from its Centres located in Bengaluru and Mumbai. Any adverse developments affecting such locations and Centres could have an adverse effect on its business, results of operations and financial condition.

Stiff competition: There are around 500 flexible workspace operators in India. Multiple flexible workspace operators have now developed the ability to offer a variety of solutions including but not limited to, on demand/pay per use solutions, co-working/shared workspaces, private suites and built to suit managed offices, each with its distinct use-case that can help cater to a diverse set of requirements from a wide range of clientele including individuals, startups, MSMEs, large enterprises and MNCs. In addition, as more players enter the flexible workspace market, the risk of market saturation increases, which can lead to heightened competition, downward pressure on pricing, and challenges in attracting and retaining members, potentially reducing profitability for operators.

Outlook

WeWork India Management is a flexible workspace operator in India. The organisation provides a comprehensive array of flexible workspace solutions, encompassing custom-designed buildings, floors and offices, enterprise office suites, tailored managed offices, private offices, co-working spaces, and hybrid digital solutions. The company has presence in Grade A properties in top-tier micro markets and strong relationships with top developers. On the concern side, the company has derived Net Membership Fees from its top 10 Clients. The loss of one or more of its top Clients could have an adverse effect on its business and results of operations. Moreover, the company faces significant competitive pressures in its business. Its inability to compete effectively would be detrimental to its business and prospects for future growth. 

The issue has been offering 4,62,96,296 shares in a price band of Rs 615-648 per equity share. The aggregate size of the offer is around Rs 2847.22 crore to Rs 3000.00 crore based on lower and upper price band respectively. Minimum application is to be made for 23 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations increased by 17.06% to Rs 19,492.11 million in Fiscal 2025 from Rs 16,651.36 million in Fiscal 2024. Moreover, its restated profit for Fiscal 2025 attributable to owners of the parent was Rs 1,273.94 million in Fiscal 2025 as compared to a restated loss attributable to owners of the parent of Rs 1,358.39 million for Fiscal 2024.

The majority of flexible workspace demand in India is attributed to the top 9 Tier 1 cities and 28 key clusters. The total flexible workspace stock in the top 9 Tier 1 cities stands at over 88 million square feet as at March 31, 2025, growing from more than 35 million square feet by the end of 2020. 28 key clusters identified across Tier 1 cities accounted for around 80% of total flexible workspace stock in these cities. The company intends to deepen its presence in these cities. It chooses potential locations for expansion carefully, based on data of multiple criteria such as member demand, availability of surrounding office infrastructure and demographic profile. Its long-standing relationships with its institutional landlords help the company to identify possible opportunities in markets that can provide strong returns on its investment over the long term, and help it to acquire suitable assets at favorable terms.