Mumbai: The We Co., the American firm which operates co-working office spaces under the WeWork brand, has posted robust revenue growth in India, even as it reels under massive losses globally, shows the company’s first public regulatory filing.
We Co. posted net loss of around $689.7 million and revenue of $1.54 billion in the first six months of 2019.
As per a report by Reuters, it is looking to raise $3-4 billion through an initial public offering (IPO), which is likely to be launched in September this year.
Since its entry in India in 2016 through a partnership with Bengaluru-based Embassy Group, WeWork has been aggressively expanding its footprint.
At present, the company has 23 co-working centres—nine each in Bengaluru and Mumbai, and another five in Gurugram—comprising 39,000 seats.
Globally, We Co. is present in 528 locations in 111 cities across 29 countries.
As per the filing, the company earned $3.5 million in management fees in the six months ended 30 June, registering 118% jump from $1.6 million in the year-ago period.
Unlike some other Asian markets, such as China and Japan, We Co. operates under a revenue and profit sharing model with its Indian partner.
“To facilitate our expansion into Asia, we formed a number of joint ventures, strategic partnerships and similar entities to drive growth in a capital-efficient manner," the company said in the public regulatory filing.
India has seen a growing number of co-working space providers in the last two years. Some of the dominant players include CoWrks and Awfis Space Solutions Pvt. Ltd.
According to property consultant CBRE, leasing quantum of this segment is expected to rise to 10 million sq. ft. by 2020 from 7.1 million sq. ft. in 2018.
“We also plan to continue to enter into management agreements, as we have done in India, under which the building owner funds all capital expenditures to build out the space to our design specifications and maintains full responsibility for the space, while we function as the manager and receive an agreed-upon management fee," the company said in the public regulatory filing.