The global economic uncertainty sparked by U.S. president Donald Trump’s tariff plans poses challenges for many industries, but WeWork India MD and CEO Karan Virwani sees it as an opportunity to fuel entrepreneurship in India. “As more skilled talent chooses to stay and work in India rather than move abroad, demand for flexible office spaces is expected to grow. Global companies looking to tap this talent will increasingly rely on coworking spaces like WeWork to accommodate their workforce,” said Virwani in an exclusive interaction with Fortune India.

Embassy Group-backed WeWork India, the country’s largest flexible workspace operator, is launching its ₹3,000 crore initial public offering (IPO), which will be open for subscription between October 3 and October 7. The entire IPO is an offer-for-sale (OFS) of 4.63 crore shares with a price band of ₹615–648 apiece. At the upper end of the issue price, the company’s market value is estimated at around ₹8,685 crore.

When asked why the IPO does not include a fresh issue, Virwani explained that WeWork India is already self-sustaining, generating sufficient cash to fund both operations and expansion. “Over the last eight years, we’ve fully invested in our infrastructure. In January, we infused capital to pay down debt. The business is now generating enough cash to support operations and growth,” he said. According to him, the IPO aims to facilitate future growth plans while leveraging the company’s existing investments.

Shaping the future of workspaces

Ten years ago, the coworking landscape was almost nonexistent. As they struggled to find professional spaces, startups often worked out of rented apartments or coffee shops. Meanwhile, large enterprises only had conventional leasing options, with little flexibility. 

That’s when Virwani took up the reins at WeWork India in 2017. Today, India’s flexible workspace sector is thriving, and WeWork has positioned itself at the forefront, transforming the way businesses operate.

“We started with small enterprises, providing them not just space, but the flexibility to scale,” he said. “Over the years, the demand has evolved, and now large-scale Fortune 500 companies are among our biggest clients. Nearly 80% of our business comes from enterprises today.”

WeWork India operates across 16 prime locations in the top eight metro cities, offering over 8 million square feet of space. Its platform caters to every type of business—a startup looking for a single desk for a day, a mid-size firm seeking short-term projects, or a large corporation requiring a fully customised office across multiple geographies, he said.

Steady financial performance

Virwani emphasised that the company’s growth has been deliberate. During the pandemic, while many businesses struggled, WeWork India maintained operational resilience. “Our revenue has compounded 20-25% annually over the last few years, and we are delivering profits with margins of over 22%. The business is self-sustaining and continues to generate cash to support expansion without relying heavily on external funding,” he said.

For the financial year ended March 31, 2025, WeWork India’s total income rose 17% year-on-year to ₹2,024 crore, compared to ₹1,737.16 crore in the previous fiscal. Profit after tax surged to ₹128.19 crore, marking a sharp turnaround from losses worth ₹146.81 crore and ₹135.77 crore registered in FY23 and FY24, respectively.

Net worth turned positive at ₹199.70 crore in FY25, compared to negative ₹437.45 crore in FY24. Reserves and surplus improved to ₹65.68 crore, against a deficit of ₹634.75 crore in the previous fiscal. Total assets stood at ₹5,391.67 crore at the end of FY25, up from ₹4,482.76 crore in FY24.

Demand heads north

Virwani expects demand for flexible workspaces to grow significantly in India. Currently, flexible offices account for about 10% of new commercial space absorption, and this could rise to nearly 25% in the coming years. “As the economy grows from $3 trillion to $5 trillion, and with a young, skilled workforce driving entrepreneurship, demand for office space, particularly flexible workspaces, is only going to increase,” he explained.

The Indian office market is forecast to witness average annual supply additions of around 63-68 million square feet during CY2025–CY2027, reflecting a CAGR of 6.7%. This growth will be driven by rising demand for quality office space, availability of land, and infrastructure initiatives aimed at improving connectivity and accessibility, as per the company’s IPO document filed with the Sebi.

Virwani said that WeWork has also diversified its product offerings. In addition to physical workspaces, the company provides digital products such as subscription-based access, virtual offices, and services such as catering and administrative support. “We are building multiple revenue streams that are high-margin and capital-efficient,” he said.

The company’s key strengths lie in its brand, prime metro locations, comprehensive product suite, and strong financials. He said that these factors differentiate WeWork from competitors and help it attract premium clients.