- WeWork India is battling to raise $US200 million in fresh capital after a local lender pulled $US100 million in funding following the The We Company’s failed initial public offering, according to Reuters.
- The business is a franchise of WeWork owned by investors including the Embassy Group, a real estate developer based in India.
- Jitu Virwani, the venture’s largest shareholder in the venture, said existing investors will inject their own capital into the business if they have to, Reuters reported.
- Read more WeWork news here.
WeWork’s failed initial public offering is sending ripples through its businesses across the world.
WeWork India, a franchise of the co-working giant, is looking to raise $US200 million in new capital after a local lender in India pulled $US100 million in funding, according to Reuters.
The venture isn’t owned by The We Company – it’s set up as a franchise run by a group of investors including Indian real estate developer Embassy Group. The consortium has reportedly considered selling as much as a 70% stake in WeWork India worth $US2.75 billion back to the WeWork parent company, Reuters found.
Embassy Group chairman Jitu Virwani – the lead shareholder of WeWork India – told Reuters any talks to sell a stake back to The We Company have been put on hold while they raise cash. Embassy is in the process of raising about $US563 million from asset sales that it would inject into WeWork India if necessary, according to Reuters.
“Yes, it (WeWork’s IPO failure) has been a bit of a challenge for us, we had a bit of a setback when we were looking to raise $US100 million from ICICI. But we’ve decided to put our own money into the business (if needed),” Jirwani told a group of journalists, Reuters reported.
WeWork parent The We Company pulled its initial public offering after its co-founder and chief executive officer Adam Neumann stepped down in late September. Investors and analysts expressed concerns about the company’s governance structure and path to profitability leading up to the IPO.
“Adam Neumann or no Adam Neumann, our business is here to stay,” Virwani told Reuters.
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