WeWork India recently announced that it has raised ₹500 crore through a rights issue, with the aim of becoming debt-free ahead of its planned IPO debut. The company plans to use the funds primarily to settle its debt, which will help in reducing its cost of capital.
Karan Virwani, Managing Director and CEO of WeWork India, expressed his confidence in the company’s long-term growth strategy, stating that the successful completion of the rights issue puts them on track to becoming debt-free. He also mentioned that the capital infusion will strengthen the company’s balance sheet through debt repayment.
WeWork India has been expanding its portfolio in recent months, adding 1.75 lakh square feet of workspace in Bengaluru and Pune, and entering the Chennai market with a 2,000-seat facility in June. The company is currently operational in eight cities and manages over 1 lakh desks.
Overall, the move to raise funds through a rights issue demonstrates WeWork India’s commitment to sustainable growth and financial stability. As the company continues to expand its presence in the Indian market, becoming debt-free will likely position it well for future growth opportunities and its upcoming IPO debut.
