Ahead of its IPO, co-working space giant WeWork is buying majority controlling stakes of its India affiliate, WeWork India, which is a brand franchisee controlled by Embassy Buildcon, which is owned by real estate billionaire Jitu Virwani and his son Karan Virwani, who is CEO of WeWork India, says a report by LiveMint.
Notably, WeWork India is a joint venture between New York-based co-working space provider WeWork and Bengaluru-based property developer Embassy Buildcon.
According to the report, WeWork is in talks to buy around 70% of WeWork India at a valuation of about $2.75 billion. For 70%, the deal is reportedly costing $1.9 billion, which would be in part cash and part stock, and could close as early as August.
Adding its India unit in to its asset portfolio may benefit WeWork as it preps for its initial public offering (IPO), which the company has filed for in April this year.
In January 2018, Embassy Group gave around Rs 100 crore ( ~ $15.6 million) to WeWork’s India unit for 100,00,000 compulsory convertible debentures in return for its investment.
Earlier this year, a report by Times of India had also suggested that WeWork is holding talks to own at least 51% stake in its Indian affiliate.
Last October, it was also reported that Masayoshi Son led Softbank was exploring to buy a majority stake of up to 50% in WeWork for $15 billion.
Later in October 2017, WeWork launched WeWork Labs in India to help early-stage startups in the country get access to investment, resources and mentorship from its global network of members. WeWork Labs functions as a startup incubator within WeWork.