SUMMARY
- WeWork India saw its revenue from operations reach Rs 1,665 crore in FY24.
- Total expenses surged by 19.1% to Rs 1,870 crore from Rs 1,569.6 crore in FY23.
- The company was able to reduce its losses by 7.6% to Rs 135.7 crore in FY24.
WeWork India saw its revenue from operations shoot up by 26.7% to reach Rs 1,665 crore in FY24 from Rs 1,315 crore in FY23 as per the company’s consolidated financial statements it submitted to the Registrar of Companies.
WeWork India is known for its flexible workspace services under the WeWork brand, offering everything from co-working and office spaces to tailored solutions for businesses of all sizes. It offers access to office spaces, shared internet, and various facilities through its memberships to individuals and organizations. Additionally, it earns revenue through various ancillary services like renting out conference rooms, charging for printing and parking.
Membership income were the primary source of revenue, accounting for 84% of its total operating revenue in FY24, rising 48.9% to Rs 1,402.5 crore. However, revenue from additional services dipped by 31.7% over the same period.
The rest of WeWork’s revenue came from product sales and other operational activities. The company also generated Rs 72 crore from financial assets such as interest and gains, which brought its total revenue for FY24 to Rs 1,737 crore.
The non-cash elements like depreciation and amortization, which accounted for around 40% of the total expenses, saw an increase by 16.9% to Rs 744 crore. Finance costs also saw a significant jump by 22.6% to Rs 507.7 in FY24.
Other cost categories included housekeeping, maintenance, employee benefits, and information technology. Total expenses surged by 19.1% to Rs 1,870 crore from Rs 1,569.6 crore in the same period.
The company was able to reduce its losses by 7.6% to Rs 135.7 crore in FY24 from Rs 146.8 crore in FY23. Despite facing losses, WeWork remains one of the few companies that have managed to maintain a substantial amount of operating cash flows, with Rs 1,160 crore in FY24. The company noted an EBITDA of Rs 1,119 crore during the same period.
The financial performance is also reflected in the company’s EBITDA Margin of 64.42% and ROCE of 11.73%. On a unit level, WeWork spent Rs 1.12 to generate a rupee of operating revenue in FY24.
In 2023 and 2024, WeWork, a once-promising provider of shared office spaces, faced considerable difficulties. In November 2023, the company filed for Chapter 11 bankruptcy in the US but successfully navigated its way out of bankruptcy a few months later.
After receiving bankruptcy clearance in May 2024, WeWork started to divest its assets, including its ownership in WeWork India. However, the attempt to sell its Indian division to Embassy Group was unsuccessful due to disagreements over the value of the company in September.
Despite these obstacles, WeWork India is now looking to go public with an IPO, aiming for a valuation between $2 and $2.5 billion, hoping to benefit from a market that has been very favorable to its competitor AWFIS since its IPO.
