The New York-headquartered collaborative workspace WeWork has set a firm grip in India after nothing revenues of Rs. 58.2 Crore, as per financials sourced from Registrar of Companies. WeWork said that all it’s companies have become profitable in the first few months of operations, although they posted a net loss of Rs. 76 Crore at company level in the fiscal year 2018.
With 8800 desks in March 2018, a roughly estimated calculation shows that each desk generated a revenue of Rs. 66,000 but lost Rs. 88,000 per desk at an average. “We don’t believe we have even scratched the surface yet and even then all the buildings are turning profitable and cash flow-positive within 6 months.” said Karan Virwani, CEO, WeWork India.
“We are focused on growth for the next few years & will continue to invest in growing our member base & further increase our presence in the country. We have 35,000 desks, so revenue has grown significantly in a very short period of time”, Virwani added.
Having entered India in collaboration with Bengaluru based Real Estate group Embassy Group in late 2016, WeWork started with its first working space in Bengaluru and started operations in July 2017. Within 2017-18, WeWork completed 6 buildings based in Bengaluru, Gurgaon and Mumbai and by the end of the current fiscal year, will have a portfolio of 3,700 desks across the three markets and plans to reach a desk count of 1.15 lakh by entering new markets across multiple cities such as Pune, Hyderabad, Delhi and Chennai by 2019-20.