WeWork Inc.’s ambitions for an exit from the Indian market have suffered a setback. The co-working giant’s plan to offload its entire 27% stake in its Indian subsidiary has fallen through, despite receiving approval from the Competition Commission of India (CCI) earlier this year.
The deal, valued at an estimated INR 1,200 crore (approximately USD 15 million), involved not only WeWork selling its own stake but also a consortium of investors, including the Enam Group family office, A91 Partners, and CaratLane founder Mithun Sacheti, acquiring a 13% stake in the Indian unit.
Reports suggest the collapse of the transaction stems from a “valuation mismatch.” This implies that WeWork and the potential investors couldn’t reach an agreement on the fair market value of the Indian subsidiary.
This development comes amidst a broader resurgence of the co-working sector in India. WeWork India itself recently appointed a new head of managed offices, signaling a potential shift towards focusing on its existing operations in the country.
The failed exit plan raises questions about WeWork’s long-term strategy for India. Whether the company will revisit the sale with a revised valuation or adopt a renewed focus on the Indian market remains to be seen.
