WeWork gets a new $1.1 billion cheque from SoftBank while it attempts resurrection – its India franchise is now offering discounts and a global all-access pass
- WeWork has secured $1.1 billion in debt financing from its prized investor – SoftBank.
- The company’s revenues have grown on a yearly basis to $882 million in the second quarter, even while memberships continue to fall.
- Meanwhile, WeWork India, which is owned by Embassy Group, is offering discounts to deal with the COVID-19 pandemic hit.
AdvertisementThe troubled WeWork has secured $1.1 billion in debt financing from its prized investor – SoftBank. The co-working startup, which until last year saw a glitzy $47 billion valuation and was heading for an IPO, has fallen from grace to a $2.9 billion valuation and is now subject to the wrath of the coronavirus pandemic.
SoftBank head Masayoshi Son, for whom the fall of WeWork was a personal hit, had recently said that they are charting a new course for the company. “We paid too much valuation for WeWork, and we did too much believe in the entrepreneur. But I think even with WeWork, we’re now confident that we put in new management, a new plan, and we’re going to turn it around and make a decent return,” Son had told Forbes in a recent interview.
WeWork global’s attempts at resurrection
According to reports, the company’s revenues have grown on a yearly basis to $882 million in the second quarter, but that’s also a fall from its $1.1 billion revenue in the first three months of 2020.
Reuters also reported that the company has reduced its cash burn. “Our early efforts to become a more streamlined, cash-conscious organization puts us in a better position to adapt quickly, navigate new realities and deliver our future business objectives,” said Kimberly Ross, the chief financial officer of WeWork in an email.
WeWork had recently cut 8,400 jobs to cut costs.
The global co-working giant’s membership stood at 6,12,000 reporting an 11.6% quarterly decline, indicating that the coronavirus pandemic and people working from home have hit the company.
WeWork India – new offers and a global partnership
Meanwhile, WeWork India, which is owned by Embassy Group, had in June received $100 million from its parent company, and now, the company is floating new offers. In an attempt to help its tenants through the coronavirus crisis, the company said it is offering discounts for its desks until November.
WeWork India: Discounts offered
|Dedicated Desk||15% off||₹10,000-25,000 per month|
|Hot Desk||50% off||₹5,000-18,000 per month|
The India vertical is also offering an all access pass, which allows its members to work out of any of the global company’s 828 locations around the world till November 1, 2020.
“Whether our members are looking to Work Near Home (WNH), reduce commute time, or are just ready for a change of environment, this benefit will give members the options they need. In addition to this, WeWork is also extending optimal packages and flexible term offerings in an effort to welcome new members into our community and provide what WeWork is best known for - flexibility and agility at any given time.” said Varun Gopinath, Chief Revenue Officer, WeWork India in a statement.
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