Proxy consultancy InGovern Research has claimed that Bengaluru-based flexible workspace operator WeWork India has addressed the governance issues it raised, clarifying that equity infusions from promoters earlier this year reflected confidence in the company.
Ahead of WeWork’s ₹3,000-crore IPO, InGovern had raised pointed questions about WeWork India’s earnings, lack of primary fundraising and brand licensing deal with WeWork Inc.
In its note, InGovern said the flex operator is fully compliant with regulations in its disclosures, noting that equity injections from promoters earlier this year reflected confidence in the company and that long-term brand licensing and management agreements remain stable.
It also confirmed that risk factors and related procedures have been disclosed in a transparent manner in accordance with SEBI norms.
The proxy firm has released an addendum to its recent report on WeWork India’s IPO, adding the company’s responses and noting that it continues to engage positively with investors and proxy advisory firms.
WeWork India has stated that its financial position remains robust, supported by strong operating EBITDA and positive cash flows since FY2023.
“This financial strength means that the company does not need to raise primary capital. Moreover, the promoters invested ₹501 crore through a rights issue in January, at a share value higher than the upper end of the IPO price band,” the company said.
Net cash generated from operating activities for FY 2025, FY 2024 and FY 2023 is ₹1,290 crore, ₹1,162 crore and ₹942 crore respectively.
“Even with a mature center occupancy of 81 percent, our business generated a very healthy adjusted EBITDA margin of 22 percent, which is significantly higher than our peers and the highest in the industry,” the company said.
Founded in 2017, it offers flexible workspace solutions in Bengaluru, Mumbai, Delhi NCR, Pune and Hyderabad, with a focus on leasing and managing office spaces. Bengaluru and Mumbai account for about 71 percent of FY25 revenue.
The company’s shares were trading close to its IPO price of ₹648 on Friday.
Published on October 19, 2025
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