WeWork India has raised Rs 550 crore ($66.5 million) in growth capital from BPEA Credit, a private credit platform.

The company, which began operations in India in 2017, has 41 offices in six major Indian cities, including Bengaluru, Mumbai, Gurugram, Noida, Hyderabad, and Pune.

WeWork India is a collaboration between commercial real estate giant Embassy Group, which owns the majority stake in the company, and WeWork International.

“We are laser-focused on fuelling growth opportunities and fortifying our position as the leading flexible workspace brand with customisable and innovative solutions for all businesses,” Karan Virwani, chief executive, WeWork India, said in a statement.

The capital raise coincides with the company’s “bullish” outlook for expansion in the coming year. Following the pandemic, the company benefited from an industry-wide shift toward flexible workspaces.

The company reported a revenue of Rs 1,300 crore in CY22, up from Rs 760 crore the previous year. It reported a positive Ebitda (earnings before interest, taxes, depreciation, and amortisation) of Rs 175 crore for the fiscal year, compared to a loss of Rs 175 crore the previous year.

Avendus Capital was the financial adviser to WeWork India on the transaction.

“This fundraising by WeWork India strongly underscores the increasing confidence of the investment community in the growth prospects of India’s flex workspace sector. This would be one of the largest transactions in this sector and we are confident that it will open up many such investment opportunities,” said Prateek Jhawar, executive director and head, infrastructure & real assets investment banking, Avendus Capital.

WeWork India currently has over 62,000 members and a total area of 6 million square feet. Its portfolio includes 70 per cent of companies like 3M, Khaitan & CO, Honeywell, Dyson, and Kia. Startups, freelancers, and small and medium-sized businesses account for approximately 30 per cent of the total.