The Competition Commission of India (CCI) has approved the exit of WeWork Inc. from its local co-working unit WeWork India Private Limited on Tuesday.
According to the CCI, the exit will have the following structures. Real Trustees will acquire a certain share capital of WeWork India while the OAW will be acquired by Embassy Buildcon.
Embassy Buildcon group currently holds around 70% of WeWork India.
Real Trustee serves as the trustee for Volrado Ventures, alternative investment funds (AIFs) registered with the Securities and Exchange Board of India. Meanwhile, Embassy Buildcon, a limited liability partnership registered in India, is involved in the development of residential and commercial real estate and other related activities.
WeWork Inc. filed for Chapter 11 bankruptcy in the US last November. The company now emerged from bankruptcy, having reduced its debt by $4 billion. Meanwhile, John Santora recently roped in as the new chief executive officer of WeWork Inc.
Operated by Bengaluru-based real-estate firm Embassy Group, WeWork India managed robust scale and kept its losses in check in the fiscal year ending March 2023. Its revenue surged 67.6% to Rs 1,314 crore in the said fiscal from Rs 784 crore in FY22. Moreover, the firm’s losses nosedived 77.29% to Rs 146 crore in FY23.
WeWork competes with Awfis which recently went public and registered Rs 616 crore of revenue in its 9 months of FY24 with a marginal loss of Rs 19 crore in the same period. Its other competitors include 91 Springboard, AltF, OfficePass, and several others.
