Home / Business and Economy / WeWork Eyes 25% Seat Growth by FY27
WeWork Eyes 25% Seat Growth by FY27
18 Sep
Summary
- WeWork aims for over 25% seat growth by FY27 with new expansion.
- Digital products revenue grew 23% in FY26, showing tech impact.
- Managed Office revenue surged 61% YoY, catering to enterprise needs.
WeWork is set for significant expansion, with management targeting the addition of 28,000 seats by FY27, projecting over 25% growth for the fiscal year. The company is actively developing a pipeline to sustain this growth trajectory.
Technology is becoming a critical operational tool, moving beyond member experience to enhance monetization, customer loyalty, and scalability. This is reflected in a 23% revenue increase for digital products in FY26.
The Managed Office division has experienced robust growth, with revenue rising 61% year-over-year to ₹480 crore. WeWork is strategically aligning this segment to meet the sophisticated workplace requirements of GCC clients, aiming to tap into larger enterprise markets.
While WeWork-branded seats remain central, the managed vertical now contributes over 20% of the total revenue. With 12 million square feet under management and a healthy expansion pipeline, WeWork anticipates a 22-24% compound annual growth rate in revenue and EBITDA, supported by seat additions and a projected 4% annual growth in average revenue per member (ARPM).
The company's financial health, marked by a net cash balance sheet and strong operating cash flow, provides the capacity to fund capital expenditures for new centers. Based on these factors, WeWork's stock is valued at 15x FY28E EV/EBITDA, with a maintained Buy rating and a target price of ₹850.
