23 Nov 2023
WeWork Global filed for Chapter 11 bankruptcy in the US, which allows its business to reorganize under a corporation or a partnership to pay its dues over time.
WeWork Global filed for bankruptcy in the US while its Indian arm reported a revenue of ₹400 crore in Q1 FY2024, 40% higher over the same period last year. The Indian arm followed the real estate business model, while its American parent portrayed itself as a tech brand with around five times higher valuations. As a tech business, WeWork Global had to open spaces where they couldn’t generate enough revenue. There were few buyers for their ₹8,000 per seat price tag.
Meanwhile, WeWork India partnered with Begaluru-based Embassy Group, which owns almost 25% of its workspaces and 73% of WeWork India. Embassy, in turn, tied up with Prestige and DLF Groups to expand in North India. WeWork India approached brands that could afford its premium prices instead of freelancers, bootstrapped startups, and small businesses. Moreover, it only stuck to metro cities, unlike WeWork Global, which failed in American tier 2 and 3 cities.