ICRA upgrades IPO bound WeWork India’s credit rating

WeWork India's credit rating upgraded to 'ICRA A-' with positive outlook, reflecting sustained growth and improved financial metrics.

ICRA Ratings has upgraded WeWork India Management Ltd’s credit rating to ‘ICRA [ICRA] A-’ with a Positive Outlook, the flexible workplace operator said in a statement.

The stable outlook on the rating reflects ICRA’s expectation that the company would sustain healthy occupancy and operating profits, it said.

WeWork India , which is gearing up for an Initial Public Offerings (IPO) is a premium flexible workspace operator in India and the largest operator by total revenue accounting to CBRE, a real estate consulting firm.

Its revenues are expected to grow by 20-25% YoY in the near term due to addition of new desk capacities at healthy occupancy levels, supported by demand for coworking spaces and the consequent improvement in operating profits, as per ICRA. 

The company posted Operating Income of ₹1,661.6 crore in FY2024 (up 26% from ₹1,314 crore in FY2023).

Given the reduction in debt levels and the consequent lower debt obligations, the debt servicing coverage ratio (DSCR) is estimated to remain comfortable in the medium term.

The rating upgrade for WeWork India factors in substantial improvement in leverage and coverage metrics post the infusion of fresh capital of Rs. 501 crore by way of right issue by Embassy Buildcon LLP in January 2025, the company said in a statement.