Just like in China and Japan, the office space company’s operations in India are franchised to third parties, in this case, property developer Embassy Group. WeWork has a management agreement with Embassy as part of which the New York company gets an agreed-upon management fee.
India is a major market for WeWork and is expected to turn profitable this year. It is also putting a greater focus on enterprise clients, many of whom are vacating traditional office spaces as a large chunk of its employees continue to work from home.
The merger with BowX values WeWork at $9 billion, a steep drop from the $47 billion it was valued for a listing in 2019. That IPO never happened following investor concerns over its business model.