CCI clears We Work Inc’s exit from India unit

MUMBAI: The Competition Commission of India (CCI) has approved WeWork Inc’s exit from its India unit by selling its entire 27% stake in the local arm. The process will be completed in two steps, the CCI said in a recent notification.
To begin with, certain share capital of WeWork India will be acquired by Real Trustee Advisory Company and a group of independent investors from the company’s majority stakeholder Embassy Group.Separately, the Embassy Group will acquire 100% share capital of 1 Ariel Way Tenant (OAW) from WeWork International. OAW holds the share of WeWork India on behalf of WeWork International. WeWork declined to comment. Currently, Bengaluru-based Embassy Group holds about 73% stake in WeWork India. Real Trustee is the trustee of Volrado Ventures which are alternative investment funds (AIF) registered with SEBI.
Once a high flying startup, WeWork which was valued at $47 billion at its peak had filed for chapter 11 bankruptcy in the US last year. It recently emerged from bankruptcy, completed its global operational and financial restructuring and appointed John Santora as its new CEO. Troubles at WeWork unfolded following a failed attempt at going public in 2019 and the subsequent pandemic which crippled businesses operating in the shared office spaces market.
The Indian unit of WeWork, however, has been growing fairly well and recently expanded in Pune and Gurgaon. It currently runs co-working spaces across more than 50 locations in eight cities.
WeWork India which competes with players like Awfis and 91 Springboard posted revenues of Rs 1,400 crore in FY23.