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CCI approves WeWork Inc's exit from India unit

3 weeks ago 32

The Competition Commission of India (CCI) has cleared US-based WeWork Inc’s proposal to sell its entire 27% stake in the local coworking firm unit, the antitrust regulator said in a statement late Tuesday evening.

Investors comprising the Enam group family office, investment fund A91 Partners and CaratLane founder Mithun Sacheti are investing in WeWork India as part of the deal, ET first reported on April 22.

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While a detailed order from the antitrust regulator is expected later, the deal involves a two-step process through which WeWork Inc and WeWork India’s parent, Embassy group, will together sell about 40% stake in the local coworking unit. The deal will lead to WeWork Inc’s exit from the Indian market.

The CCI did not name the new entities investing in WeWork India, which is led by CEO. Karan Virwani.

Adam Nuemann and Miguel McKelvey co-founded WeWork Inc, which filed for Chapter 11 bankruptcy in the US last November. It emerged from the bankruptcy filing and recently appointed John Santora as new chief executive. In sharp contrast to the collapse of its US operations, the Indian business of WeWork reported revenue of Rs 1,300 crore for 2022-23, a growth of about 68% year-on-year. Net losses narrowed 80% to Rs 146 crore during the year.

WeWork Inc’s India exit comes at a time when coworking startups are seeing a post-pandemic revival in demand. Peak XV Partners-backed Awfis has gone public, while Indiqube, CoWorks, 91Springboard and Bhive are among the other coworking platforms in the country.

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