WeWork India has reported impressive growth figures for FY24, with its revenue increasing by nearly 27%, despite challenges faced by its parent company, WeWork Inc. The global coworking giant, which has been considering an exit from the Indian market, saw a failed attempt to sell its 27% stake in the Indian arm. However, the company’s recent financial performance could pave the way for renewed interest in the region.
In the fiscal year ending March 2024, WeWork India achieved a revenue of Rs 1,665 crore, marking a 26.7% rise from the previous year’s Rs 1,315 crore. The firm, which provides flexible office solutions under the WeWork brand, caters to businesses and individuals with a range of services including coworking spaces, office leases, and custom-built solutions. The company generates income primarily through membership subscriptions, which accounted for 84% of the total revenue. Membership sales saw a substantial growth of 48.9%, contributing Rs 1,402.5 crore in FY24.
However, revenue from ancillary services such as conference room rentals, printing, and parking saw a decline of 31.7%, contributing less to the overall income. In addition, the company earned Rs 72 crore in non-operating income from financial assets, pushing the total revenue to Rs 1,737 crore for the year.
The largest expenditure for WeWork India was depreciation and amortization, which rose by 16.9% to Rs 744 crore, making up nearly 40% of the total costs. Finance costs also saw an increase of 22.6%, reaching Rs 507.7 crore. Other significant expenses included housekeeping, maintenance, employee benefits, and IT services.
Despite these rising costs, WeWork India succeeded in reducing its losses by 7.6%, posting a loss of Rs 135.7 crore for FY24 compared to Rs 146.8 crore the previous year. The company’s cash flow remained strong, with operating cash flows of Rs 1,160 crore for FY24, and it reported an EBITDA of Rs 1,119 crore, demonstrating improved operational efficiency.
Key operational metrics also improved: WeWork India’s EBITDA margin rose to 64.42%, and its Return on Capital Employed (ROCE) increased to 11.73%. For every rupee of revenue, WeWork spent Rs 1.12 on operations during FY24, reflecting a more efficient business model.
Although facing a tumultuous period, especially after WeWork’s Chapter 11 bankruptcy filing in late 2023, the company has shown resilience. After emerging from bankruptcy in May 2024, WeWork has been divesting its assets, including its stake in WeWork India. A planned sale to Embassy Group fell through due to disagreements over valuation, but now, WeWork India is eyeing an initial public offering (IPO) with a projected valuation of $2-2.5 billion. This ambition is driven by the success of its competitors like AWFIS, which have garnered positive attention following their market listings.