The giant WeWork India,controlled by billionaire developer Jitu Virwaniof Embassy Group, is talking to Goldman Sachs and Warburg Pincus, among others, to raise up to $200 million.
It is one of the heavily funded tech-enabled startups, founded by Adam Neumann and Miguel McKelvey. They are managing more than 10 million sqft of shared office spaces worldwide. Jitu Virwani handles the privately held Embassy Group, one of the largest conventional office space developers in the country and his elder son Karan Virwani leads WeWork operations locally.
Under a deal signed about two years ago, Virwani and Embassy have exclusive rights to operate WeWork in India. The collaborative workspace pioneer operates 12,000 desks currently, which plans to double it by the end of 2018. For WeWork India is the only big market and its last valued at $20 billion globally.
GIC of Singapore is another contender that showed interest in the deal, which is still in the early stage. The latest development comes when WeWork raised more than $4 billion from SoftBank and is eyeing to raise its economic interest in the Indian business. WeWork and SoftBank are planning to take charge of the Indian business much earlier than it is predicted. Although they declined to comment anything, reported by TOI.
In India, the demand for flexible working space is expected to rise 40 percent and the stock supply rose by 35 percent. Recording the data, the number of flexible workspace providers have also been increasing and WeWork remains the top player among others.
In India, the demand for flexible working spaces is expected to increase 40% and the stock supply is seen rising 35% in the current calendar year, a JLL report said, adding that it would account for nearly 20% of the total office absorption in the country. Tracking the boom, the number of flexible workspace providers have also risen significantly, though WeWork and its main Indian rival CoWorks remain the top players.