BPEA Credit has sealed a Rs 550 crore ($66.4 million) structured finance transaction to back WeWork India, a flexible workspace provider.
BPEA Credit was spun out of alternative investment firm Baring PE Asia (BPEA), which recently completed the sale of its private equity practice to European buyout major EQT.
The financing comes in view of WeWork India’s bullish outlook towards expansion and its robust performance in FY23.
WeWork India began operations in India in 2017 with 100,000 square feet of space and 2,200 clients. Over the last five years, it has grown to more than 62,000 customers and over 6 million square feet across 41 locations and six cities—Bengaluru, Mumbai, Gurugram, Noida, Hyderabad and Pune.
WeWork India’s client portfolio comprises 70% of enterprises such as 3M, Khaitan & Co, Honeywell, Dyson and KIA, while startups, freelancers, and SMEs make up for the remaining 30%.
Earlier this year, the company announced its first profitable quarter, followed by new leasing announcements across its major operational cities.
“Flexibility is paramount in today’s workforce and the investment by BPEA Credit stands testament to the massive growth opportunity for flex workspaces in India and validates WeWork India’s strong fundamentals and healthy business model. We are laser-focused on fuelling growth opportunities and fortifying our position as the leading flexible workspace brand with customizable and innovative solutions for all businesses,” said Karan Virwani, CEO, WeWork India.
In 2020, WeWork India raised Rs 750 crore via funding from WeWork Global. This helped stabilise the business during the pandemic. The company turned profitable this year and is set to clock revenue of Rs 1,300 crore in 2022. Its EBITDA has moved from a loss of Rs 120 crore in CY21 to a profit of Rs 175 crore in CY22. The company also recently invested in the Bengaluru-based conferencing and collaboration platform Zoapi.
Avendus Capital was the exclusive financial advisor to WeWork India on the transaction.