Over the past two years, investors have witnessed a wave of flexible workspace providers entering the capital markets. From Awfis Space to Indiqube and Smartworks, a string of operators have launched IPOs, driven by a structurally bullish outlook for new-age workspaces. WeWork India is the latest to join this trend with a Rs 3,000 crore issue.
Analysts attribute this surge to two structural shifts. Enterprises increasingly prefer variable, “as-a-service” real estate to manage cost and headcount volatility, while the client base has expanded beyond startups to include global capability centres, IT/ITES, consulting, and BFSI sectors.
The flexible workspace sector is projected to grow at a 21–22% CAGR during FY25–27. Reports value the market at $5.99 billion (Rs 53,121 crore) in 2025, with expectations to reach $11.39 billion (Rs 97,680 crore) by 2030. These IPOs reflect both the industry’s robust growth and strategic moves by companies to strengthen their financial position.
According to Thomas V. Abraham of Mirae Asset Sharekhan, gross leasing volumes for flex workspaces reached 12.4 million sq ft in 2024, up 57% year-on-year. Flexible offices now constitute 14% of the overall office leasing market, with Tier 1 cities driving the bulk of activity.
“What was once seen as a cost-effective solution for startups has now become a core component of large enterprises’ real estate strategies,” he noted.
Where WeWork stands
Launched in 2017, WeWork India is the country’s largest premium flexible workspace provider. Backed by Embassy Group, it operates 68 centres across eight cities, offering 114,000 desks, 94% of them in Grade A buildings.
The firm commands roughly 25% market share and maintains an enterprise-heavy client mix, with 60–76% of revenues coming from corporates.
“WeWork India stands out due to its scale, brand presence, and enterprise-focused strategy. This positions it as the largest operator in the Indian flexible workspace market,” said Vinit Bolinjkar of Ventura.
Peers are considerably smaller. Awfis, Indiqube, and Smartworks have all tapped the market, but WeWork enters with stronger brand recall and operational scale. Stock market performance of peers has been mixed: since listing, Awfis has gained 40%, Smartworks 24%, while Indiqube is up just 6%.
Financial turnaround
WeWork India has reported a turnaround in profitability. Revenue stood at Rs 1,949 crore in FY25, with a net profit of Rs 128 crore, recovering from a loss the previous year. Its EBITDA margin exceeded 63%, while return on net worth reached 63.8%.
“Positioned with a robust portfolio, WeWork India aims to grow faster than the sector’s 18–20% growth rate, supported by strategic expansions and a strong enterprise clientele,” said Vinit Bolinjkar.
Khushi Mistry of Bonanza highlighted that the IPO reflects WeWork’s turnaround, leadership, and scale, but also carries sector risks such as volatility and renewal pressure.
Valuation and risks
The IPO is priced at Rs 615–648 per share, entirely an offer for sale. At the upper band, WeWork India trades at a P/E of nearly 68x, considered expensive compared with broader markets. Analysts note that while profitability has improved, high fixed costs and sector cyclicality make valuations demanding.
Abhishek Jain of Arihant Capital said, “WeWork India is an attractive opportunity for aggressive investors. With leadership in a futuristic industry and strong long-term potential, the stock could be a good addition for those seeking exposure to the flexible workspace theme.”
However, risks remain. Any downturn in corporate leasing demand or oversupply in metros could affect occupancy. Rating agency ICRA projects sector growth of 21–22% CAGR between FY25 and FY27 but cautions that maintaining healthy occupancy levels is critical.
Outlook
India is now the largest flex office market in Asia Pacific, with nearly 96 million sq. ft. of stock, expected to reach 100 million by FY26 and 280–300 million by 2027. With its scale and brand, WeWork appears well positioned to capture this growth.
“The outlook for the sector remains very positive. WeWork India, as one of the largest players, is well placed to benefit,” Jain added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Analysts attribute this surge to two structural shifts. Enterprises increasingly prefer variable, “as-a-service” real estate to manage cost and headcount volatility, while the client base has expanded beyond startups to include global capability centres, IT/ITES, consulting, and BFSI sectors.
The flexible workspace sector is projected to grow at a 21–22% CAGR during FY25–27. Reports value the market at $5.99 billion (Rs 53,121 crore) in 2025, with expectations to reach $11.39 billion (Rs 97,680 crore) by 2030. These IPOs reflect both the industry’s robust growth and strategic moves by companies to strengthen their financial position.
According to Thomas V. Abraham of Mirae Asset Sharekhan, gross leasing volumes for flex workspaces reached 12.4 million sq ft in 2024, up 57% year-on-year. Flexible offices now constitute 14% of the overall office leasing market, with Tier 1 cities driving the bulk of activity.
“What was once seen as a cost-effective solution for startups has now become a core component of large enterprises’ real estate strategies,” he noted.
Where WeWork stands
Launched in 2017, WeWork India is the country’s largest premium flexible workspace provider. Backed by Embassy Group, it operates 68 centres across eight cities, offering 114,000 desks, 94% of them in Grade A buildings.
The firm commands roughly 25% market share and maintains an enterprise-heavy client mix, with 60–76% of revenues coming from corporates.
“WeWork India stands out due to its scale, brand presence, and enterprise-focused strategy. This positions it as the largest operator in the Indian flexible workspace market,” said Vinit Bolinjkar of Ventura.
Peers are considerably smaller. Awfis, Indiqube, and Smartworks have all tapped the market, but WeWork enters with stronger brand recall and operational scale. Stock market performance of peers has been mixed: since listing, Awfis has gained 40%, Smartworks 24%, while Indiqube is up just 6%.
Financial turnaround
WeWork India has reported a turnaround in profitability. Revenue stood at Rs 1,949 crore in FY25, with a net profit of Rs 128 crore, recovering from a loss the previous year. Its EBITDA margin exceeded 63%, while return on net worth reached 63.8%.
“Positioned with a robust portfolio, WeWork India aims to grow faster than the sector’s 18–20% growth rate, supported by strategic expansions and a strong enterprise clientele,” said Vinit Bolinjkar.
Khushi Mistry of Bonanza highlighted that the IPO reflects WeWork’s turnaround, leadership, and scale, but also carries sector risks such as volatility and renewal pressure.
Valuation and risks
The IPO is priced at Rs 615–648 per share, entirely an offer for sale. At the upper band, WeWork India trades at a P/E of nearly 68x, considered expensive compared with broader markets. Analysts note that while profitability has improved, high fixed costs and sector cyclicality make valuations demanding.
Abhishek Jain of Arihant Capital said, “WeWork India is an attractive opportunity for aggressive investors. With leadership in a futuristic industry and strong long-term potential, the stock could be a good addition for those seeking exposure to the flexible workspace theme.”
However, risks remain. Any downturn in corporate leasing demand or oversupply in metros could affect occupancy. Rating agency ICRA projects sector growth of 21–22% CAGR between FY25 and FY27 but cautions that maintaining healthy occupancy levels is critical.
Outlook
India is now the largest flex office market in Asia Pacific, with nearly 96 million sq. ft. of stock, expected to reach 100 million by FY26 and 280–300 million by 2027. With its scale and brand, WeWork appears well positioned to capture this growth.
“The outlook for the sector remains very positive. WeWork India, as one of the largest players, is well placed to benefit,” Jain added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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