$47 Bn Valued WeWork USA Goes Bankruptcy, What It Means For India?
WeWork is a company known for providing shared workspaces for tech startups and other businesses. A while ago, it was a very popular company in America, valued at a huge amount, $47 billion, making it the most expensive startup of its kind in the US.
Let me clarify that WeWork India and WeWork Global are not the same. Even though they share the name, WeWork India is mostly owned by the Embassy Group from Bangalore and operates on its own.
It has a big presence with 50 centers and about 90,000 desks across seven big cities in India. The head of WeWork India has said that even though the WeWork company in America is facing financial problems, WeWork India won’t be affected because they are separate.
WeWork USA faced some big problems. It had a plan to grow very fast, but this plan cost a lot of money and didn’t make enough in return. Their offices were too expensive compared to the money they were making.
Plus, when the COVID-19 pandemic hit, many companies started letting employees work from home, which meant fewer people needed office spaces like those WeWork offered.
This made things worse for WeWork because they relied a lot on small businesses and startups that were cutting costs and spending less because of the economic situation.
For people in India, there’s no need to worry about WeWork’s problems in America affecting the WeWork they know. WeWork India has been doing well and making money since 2021. The company in India has grown and has brought in more revenue.
The Embassy Group, which owns most of WeWork India, has said they will keep investing in it. So, the workspaces that WeWork provides in Indian cities will continue to operate as usual.
This is good news for Indian businesses that use these spaces or for anyone who’s thinking about it. They can still enjoy the flexibility and services that WeWork India offers without the trouble happening in the US affecting them.