FILE PHOTO: A man walks out of a WeWork space in the Manhattan borough of New York City, New York, U.S., October 4, 2019. REUTERS/Carlo Allegri/File Photo
(Reuters) – WeWork India, operated by real estate developer Embassy Group, saw talks to raise $100 million from Indian lender ICICI Bank break down following bad sentiment from the We Company’s botched initial public offering and now the firm is in early discussions to raise $200 million in fresh funding from new investors, said Indian real estate tycoon and billionaire Jitu Virwani.
Separately, Embassy Group, which is controlled by Virwani, plans to divest some of its assets and raise roughly Rs. 4000 crore ($563 million) and use a good chunk of those proceeds to invest in WeWork India, if the talks to raise funding from new investors are unsuccessful, Virwani said on Thursday.
“Even if we have to put all that money (Rs. 4000 crore)… to grow WeWork India, we will continue,” said Virwani. His son Karan Virwani heads WeWork India.
Embassy also indicated that the talks to sell the stake to the We Company have now been delayed because of the struggles that the company is currently facing amid its aborted public flotation and founder Adam Neumann’s decision to step down as chief executive officer.
Reporting by Anirban Sen; Editing by Bernard Orr