WeWork India has continued expanding despite the turmoil that engulfed its New York-based parent company, WeWork, which went from a valuation of as much as $47 billion to bankruptcy.
Karan Virwani, who helped establish WeWork India, said the Indian business has since built a profitable model and listed publicly last year. The company now operates 79 centers across nine Indian cities and pays WeWork Global a revenue share.
Virwani said WeWork India is currently the largest operator by revenue and profitability, with growth supported by demand from multinational companies and global capability centers (GCCs), according to Fortune India.
GCCs are driving demand for flexible offices
India’s growing GCC market has become a major source of demand for flexible workspace. Virwani said companies entering India can use flexible offices to start with a small number of employees and expand as hiring grows, without immediately committing to a large traditional office.
Some established companies are also moving part of their office footprint into flexible space. Virwani said WeWork India has seen companies shift 20% to 30% of their footprints toward more flexible offerings while retaining larger traditional offices.
He said larger corporate campuses will continue to exist, particularly among the biggest global companies, but smaller and mid-sized GCCs have less need to commit to large facilities from the outset.
WeWork India is expanding beyond major markets
Bangalore remains WeWork India’s largest and most mature market, while Hyderabad, Chennai and Pune are among its fastest-growing markets.
The company is also watching markets including GIFT City and Lucknow. Rather than categorizing cities by tier, Virwani said WeWork looks for sufficient demand and high-quality commercial development that can support its locations.
WeWork is adding services beyond office space
Virwani said WeWork India is also looking for growth beyond traditional workspace. The company recently launched a B2B marketplace connecting members with business service providers and is expanding its technology offerings.
WeWork India also owns a 40% stake in My HQ, a workspace data and insights platform, and has invested in Rivet, which helps companies establish traditional offices.
Competition remains intense, particularly among listed operators. Virwani said WeWork India continues to offer everything from individual desks to managed offices, while many competitors have concentrated primarily on managed office space.
He also pointed to the wider growth of flexible workspace in India. According to Virwani, flex operators accounted for 27% of incremental commercial real estate space, surpassing IT and IT-enabled services as a source of new demand.
