Ankit Jindal’s Post

WeWork: Bankrupt; WeWork India: IPO pathway WeWork India is a 73%::27% JV between Embassy Group & WeWork - Embassy Group has thus far done a phenomenal job on executing the co-working playbook (1) Embassy stands to make substantial money from just this change of ownership: - WeWork's 27% stake (₹700 crore) gets bought out at a ₹2600 crore valuation - A 40% stake will then be sold to PE investors for ₹1200 crore at a ₹3000 crore valuation (2) WeWork India is very well run - FY 23 revenue was ₹1300 crore (almost x2 what it was in FY 22) - Cut its loss from ₹700 crore to ₹100 crore (FY 22 v/s FY 23) - And, WeWork became EBITDA +ve in FY 23 (and, in FY 24, it generated ₹500 crore of EBITDA in the first 6 months) (3) My take on why WeWork India succeeded? (a) Embassy ran it like a real estate business (NOT a Tech company); their office park REIT is a good example of their execution. (b) Embassy went after Enterprise clients (80% of seats) who are sticker & pay more per seat (including value added services) (c) Embassy owns (large chunks of) real estate which WeWork India leases (i.e. full stack approach) (d) The WeWork brand just works :) Embassy plans to take WeWork India public. (i) Yesterday, Awfis (co-working space operator backed by PeakXV) also got the SEBI nod to go public (ii) Perhaps, we will soon see a larger set of co-working companies IPO (e.g. 91Springboard) ➡️Glad to see that Embassy Group has created a 5% ESOP pool (would be worth ~₹150 crore upon the stake sale to PE investors)

🏢 Smartworks Transitions to Public Company Ahead of Potential IPO! 📈 @Smartworks, a prominent player in India’s co-working space, has made a strategic move by transforming into a public company. 🌐 This shift positions Smartworks for potential future growth and an eventual initial public offering (IPO). 💼 As the demand for flexible workspaces continues to rise, Smartworks aims to capitalise on this trend and expand its footprint. 🌟 📊 Why the Transition? By becoming a public company, Smartworks gains access to capital markets, allowing it to raise funds for expansion, technology investments, and enhancing its service offerings. 🚀 Investors and stakeholders will closely watch Smartworks’ journey as it navigates the path toward an IPO. 🤝 #Smartworks #IPO #PublicCompany #BusinessGrowth #CoworkingSpaces #OfficeSolutions #CorporateTransition #BusinessExpansion #MarketDebut #Investors #India #BelieveIndia To read more in detail, click below:👇 https://lnkd.in/gvZmcWvx

WeWork Global: Filed Bankruptcy ($47 Billion ➡️ $0) WeWork India: Profitable and ₹1300 cr annual revenue How WeWork India thrived while its parent company went bankrupt in 2023? The answer lies in the strategic brilliance of Karan Virwani, CEO of WeWork India. Virwani, with his deep understanding of the Indian market, steered WeWork India on a drastically different path. While WeWork Global expanded recklessly, Virwani focused on high-demand areas in Tier 1 cities, achieving an impressive occupancy rate of 82-87%. Unlike WeWork Global's asset-heavy model, burdened by long-term leases, Virani forged smart partnerships with real estate giants like DLF Limited and Embassy, opting for a revenue-sharing model. This agile approach allowed WeWork India to weather economic storms and maintain profitability. Moreover, Virwani recognized the potential of India's burgeoning startup ecosystem and the increasing demand for flexible workspaces among large enterprises. By catering to the needs of these big players, WeWork India secured a steady revenue stream, with 70% of its earnings coming from enterprise clients. WeWork India's success story is a testament to the power of local expertise and a CEO's vision. #WeWorkIndia #BusinessStrategy #IndianStartups

WeWork Global files for Chapter 11 bankruptcy. WeWork India has been PROFITABLE from day one. Curious about their secret to success? The Core Strategy -Lease commercial buildings -Transform them into attractive workspaces -Rent them out at a premium per seat -Focus on customer experience Why WeWork Global Failed -Misalignment: It was marketed as a tech company but operates fundamentally as real estate. -Unsustainable Growth: Pursued exponential growth without sufficient market demand. Key to WeWork India's Success 1. Strategic Joint Ventures : Partnered with real estate giants like Prestige and DLF, minimizing direct property ownership. 2. Focused Market Positioning : Targets "flexible workspaces for growing businesses" instead of freelancers. 3. Premium Pricing Model : High short-term prices encourage long-term commitments. 4. Targeting High-Paying Clients : Focuses on established companies over startups. 5. Selective Market Penetration : Concentrated efforts on metro cities, avoiding low-demand areas. WeWork India's success lies in understanding -its core business, -strategic partnerships, -targeted market approach, …..in contrast to the global strategy that led to WeWork Global's downfall. How has been your experience at Indian WeWork offices? Post inspiration: Growth X #startups #failed #India #wework

Smartworks’ topline tripled to exceed INR 1K crore in FY24 and now the startup is preparing for its debut in the public market. In doing so, it’s following in the footsteps of its rival Awfis, but with a significantly larger #IPO 👇 Set up in 2016 by Neetish Sarda and Harsh Binani, Smartworks calls itself an #office experience and managed campus platform, a state-of-the-art system that looks after technology aspects, operations, and more. The company filed a DRHP with SEBI in early August for a fresh issue of equity shares worth INR 550 Cr and an OFS of 67.59 Lakh equity shares by promoters. It claims to be the largest managed campus operator among benchmarked peers in terms of total workspace stock as of March 31, 2024, managing 8 Mn sq. ft across 39 operational centres. A 2024 report by Avendus Capital forecasts that the flexible #workspace sector will expand to 126 Mn sq. ft by 2028, at a 15% CAGR, and address a $9 Bn market. Alongside Smartworks, industry leaders like WeWork India and BHIVE are also eyeing IPO opportunities in the coming years. Given this backdrop, public market interest in coworking space providers will be pretty strong when they make their #market debuts. Can Smartworks’ IPO capitalise on the growing flexible workspace trend? Find out more in our in-depth article: https://lnkd.in/gBHxH_AA #IPO #smartworks #startup

In The End... I Think Adam Neumann Won | WeWork, 2024 I recently had an offer for around 30,000 SF from former WeWork co-founder Miguel McKelvey for a new concept. The deal never happened, but everyone's ears sort of perked up at thoughts of "is this the next billion dollar startup" "Can he strike lighting twice" & 100% yes, credibility of the founders is evident til this day. In the 2010's every broker and landlord wanted a piece of WeWork. Sky high leasing fees, rents, property valuations, cash out refinance proceeds; everyone wanted in. Everyone. Today, I saw that Neumann is a headliner at The Real Deals South Florida event, which means he still can draw a crowd, people are probably interested in seeing him, and he's probably still celebrated. Without diving into all the ups and downs of the company, imagine this: you start a company based on togetherness in 2010, push valuations from $1B to $10B to $47B, and find yourself in a car with SoftBank CEO Masayoshi Son, receiving a billion-dollar handshake (ultimately $10B). You earn $700M to support your lifestyle during that time, a boardroom fight breaks out, and you’re paid $1.7B to leave, plus $130M in consulting fees. Everyone mocks you, and then Jared Leto (any 30 Seconds to Mars fans out there?) and Anne Hathaway portray your life in a movie. Ultimately being bought out at a peak valuation & getting global recognition on every media platform possible I believe is a win. At the peak, WeWork had a 33M square foot portfolio with a valuation of $47B or $1,424 per SF of leased space. That's almost impossible to replicate. Today, I don't know what WeWork is doing nor am I interested... but I am interested in Neumann's next act Flow. We all love the unicorn come up story. EDIT: Photo is reportedly Adam Neumann around the time he is being forced to step down as CEO & all the drama unfolding.

🚀 WeWork’s Strategic Exit from India: A game-changer for the co-working landscape! 🌟 WeWork Inc., once the world’s largest co-working space provider, has been navigating choppy waters lately. But now, it’s making a bold move: exiting its Indian venture, @WeWork India Private Limited. 🏢 @The Competition Commission of India (CCI) has given the green light for this significant departure. 🙌 🌐 The Two-Step Exit Plan Here’s how it works: First, Real Trustee Advisory Company and a group of independent investors will acquire a chunk of WeWork India’s share capital. 🤝 Simultaneously, the Embassy Group, WeWork India’s parent company, will take over 100% of the share capital held by @1 Ariel Way Tenant (OAW), a UK entity representing WeWork International. 🌎 WeWork India has been thriving, boasting revenues of ₹1,400 crore in FY23, an impressive EBITDA, and a profit after tax. 📈 With over 90,000 desks across 54 locations, it’s been a success story in the Indian market. Now, as WeWork Inc. spreads its wings globally, India bids farewell to this co-working giant. 🌏👋 #WeWork #BusinessExit #Corporate #Strategy #Business #Market #OfficeSpaces #Entrepreneurship #Business #Investment #India #BelieveIndia To read more in detail, click below:👇 https://lnkd.in/gs2CjG2f

The WeWork bankruptcy restructuring symbolizes a significant transition for the company and possibly the coworking industry as a whole. With fewer locations, a reduced debt burden, and a new business model, WeWork is poised to test its hypothesis that flexibility is indeed the way forward for office spaces. As the company exits bankruptcy, it will enter a new era, one that could redefine coworking's role in the modern work environment.https://wix.to/XESwgOJ #bankruptcy #restructuring #wework #startups #failures