Enam Holdings promoters Akash Bhansali and his family members, along with their investor partners, will buy a 40% stake in leading co-working firm WeWork India for ₹1,200 crore in a secondary share sale, two people familiar with the development said.
The Embassy Group, promoters of WeWork India, currently owns 68% share in the firm. The Bhansali family is leading the consortium to acquire the stake in WeWork India.
Bengaluru-based real estate developer Embassy Group will also buy out American WeWork Inc’s entire 27% stake in WeWork India for about ₹700 crore ($85 million). With this, WeWork Inc will exit its India business. Embassy Group will hold 55-60% stake in WeWork India after the transaction.
“Post WeWork Inc’s exit, the Indian affiliate will continue to use the WeWork brand name for its business. For using the brand name, WeWork Inc will be paid an annual 2% franchisee fee,” said one of the persons mentioned above, who didn’t wish to be named.
WeWork CEO Karan Virwani and Embassy Group chairman Jitu Virwani didn’t respond to calls.
A spokesperson for the Bhansali family declined to comment on the deal.
“There are several small investors but Enam is leading the round,” said the second person.
The person said the Bhansali family is particularly enthused by the “phenomenal growth potential” for the WeWork model of workspace business in India.
Embassy and Enam have applied for an approval from the Competition Commission of India (CCI) for the proposed deal, the person added. The transaction could be closed within the next 4-6 weeks.
The share of flexible workspaces in the overall commercial office market is growing. From 7% in 2023, it is expected to rise to around 12% by 2028, investment banking firm Avendus Capital’s estimates.
WeWork India is looking to add 18 more buildings, across 1.5 million sq ft, this year. It plans to add more managed offices as well.
WeWork India’s member base grew 18% in FY24, and its average occupancy stands at 82%. It has over 90,000 desks, across 8 million sq ft, in seven cities.
In 2017, WeWork Inc entered India in a joint venture with developer Embassy Group. The same year, Japan’s SoftBank invested $4.4 billion in WeWork Inc at a $20 billion valuation. Thirteen years after it was founded, WeWork Inc in November 2023 filed for Chapter 11 bankruptcy in the US.