WeWork India reports Rs 1,665 Cr revenue in FY24, cuts losses

Planning to exit from India, WeWork Inc.'s plan to sell its 27% stake in its Indian unit collapsed due to a valuation mismatch in September. If it was interesting, those plans could see a revival sooner than expected, going by the numbers delivered by WeWork India. It managed a double-digit growth in FY24 along with an improved bottom line. 

WeWork India’s revenue from operations grew 26.7% to Rs 1,665 crore in the fiscal year ending March 2024 as compared to Rs 1,315 crore generated in the previous fiscal year, as per the company’s consolidated financial statements filed with the Registrar of Company.

WeWork India operates as a flexible workspace provider under the global WeWork brand, offering co-working spaces, office spaces, and custom-built solutions for businesses of all sizes. WeWork sells memberships to individuals and organizations that provide access to office space, shared internet connection, and certain facilities. It also generates revenue via ancillary business services such as rent of conference rooms, printing charges and parking charges, among others.

Membership revenue for the company was the main source and contributed 84% of the total operating revenue in FY24. These collections inclined 48.9% to Rs 1,402.5 crore in the fiscal year. Revenue from providing additional services (mentioned above) declined 31.7% during the period. At the same time, the remaining sum of the operating revenue came from the sale of products and other operating activities.

The company also earned Rs 72 crore over financial assets as interest and gains. Considering this non-operating income, the overall revenue of WeWork reached Rs 1,737 crore during FY24.

As per filings, the non-cash element, depreciation and amortization accounted for the largest expense forming around 40% of the total costs. This cost increased 16.9% to Rs 744 crore. Finance cost was another major expense which went up 22.6% to Rs 507.7 crore during the year. 

Housekeeping, maintenance, employee benefits, information technology, et al also contributed significantly to the total cost. For detailed information, visit TheKredible.

WeWork India’s total expenses rose 19.1% to Rs 1,870 crore in FY24 from Rs 1,569.6 crore in FY23. At the end, the firm managed to control its losses by 7.6% to Rs 135.7 crore in FY24 against Rs 146.8 crore in FY23.

Despite losses, WeWork remains one of the few cash-rich companies with Rs 1,160 crore operating cash flows in FY24. Importantly, the company reported an EBITDA of Rs 1,119 crore during the year.

The improved operational efficiency can also be seen via ratios as the company’s EBITDA Margin and ROCE bettered to 64.42% and 11.73%, respectively. On a unit level, WeWork spent Rs 1.12 to earn a rupee of operating revenue in FY24.

WeWork, the once high-flying co-working space provider, faced significant challenges in 2023 and 2024. In November 2023, the company filed for Chapter 11 bankruptcy in the US, however, it managed to emerge from bankruptcy after a few months.

Following bankruptcy approval in May 2024, WeWork began to divest its assets, including its stake in WeWork India. However, the proposed sale of its Indian unit to Embassy Group fell through due to valuation disagreements in September. Despite these challenges, WeWork India is now eyeing an IPO, aiming for a valuation of $2-2.5 billion, hoping to capitalize on a market that has been more than generous to competitor AWFIS post listing.