WeWork India offers discount up to 50% to gain new clients – ET RealEstate

NEW DELHI: Co-working firm WeWork India on Thursday announced discounts up to 50 per cent for 3 months and free access to its members to over 800 centres globally, as part of its strategy to attract new clients amid the COVID-19 pandemic. The company globally has 828 centres in over 149 cities and 38 countries.

WeWork India, which is owned by realty firm Embassy Group, has 34 centres in six cities comprising 60,000 desks and 40,000 members. In June, it raised USD 100 million from US-based WeWork Global.

The co-working segment was performing well on rising need of flexible workspace from corporates and start-ups, before the pandemic hit demand of office space.

In a statement, WeWork India said it will offer global access to members, enabling them to work from any location across the nation or the world for no extra credit charge.

“For the first three months, WeWork India will offer hot desks at 50 per cent off and dedicated desks at 15 per cent off with the set-up fee waived,” it said adding that the offer is available till August.

Currently, the per-hot desk rate is between Rs 5,000 and Rs 18,000 monthy, while dedicated desk costs between Rs 10,000 and Rs 25,000 across 34 centres.

At its 20 centres, WeWork India has also introduced one-price model for private offices.

Private office across 20 centres will now be available at Rs 15,000-17,000 per desk per month, against Rs 20,000-22,000 earlier.

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WeWork gets new $1.1 billion commitment from SoftBank – ET RealEstate

NEW YORK: The owner of money-losing shared office provider WeWork told employees on Thursday it has slashed its cash burn rate almost in half from the end of last year and obtained a $1.1 billion commitment in new financing from majority owner SoftBank Group Corp.

The company said in an e-mail to employees that its second-quarter results show the coronavirus pandemic has hurt business but its financial position remains strong.

“Our early efforts to become a more streamlined, cash-conscious organization puts us in a better position to adapt quickly, navigate new realities and deliver our future business objectives,” said Kimberly Ross, chief financial officer of WeWork, in the e-mail seen by Reuters.

Revenue in the quarter reached $882 million, a 9% increase from a year earlier, Ross said. WeWork in the first quarter reported revenue of $1.1 billion, the first time it had exceeded nine figures, and its cash burn was $482 million.

WeWork has $4.1 billion in cash and unfunded cash commitments, including the $1.1 billion in new financing, Ross said. WeWork in July indicated it expected to be cash flow positive in 2021, according to the Financial Times.

The $1.1 billion is the last of the debt facilities included in a wide-ranging transaction announced in October 2019, a source at SoftBank said.

WeWork ended the quarter with 612,000 members, a decline from 693,000 in the prior quarter. But 48% were from prized “Enterprise” customers, businesses with 500 employees or more.

The results were released almost a year to the day after it filed plans to go public, when the company was valued at $47 billion and looked poised to be one of the year’s hottest IPOs.

WeWork soon entered a tailspin as revelations of corporate mismanagement emerged. The company has since undergone an enormous management shake-up and remains enmeshed in lawsuits over a $3 billion tender offer to existing shareholders.

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