India’s coworking sector is going through a boom. After the Awfis listing last year, Smartworks and IndiQube went public in 2025. Next up, the likes of WeWork India, DevX and The Executive Centre are waiting in the wings with their own IPOs.

WeWork India’s listing is being seen as the litmus test after the relatively smaller public issues in this sector as the company is expected to raise between INR 3,500 Cr and INR 4,000 Cr. With such a large potential issue, WeWork is definitely stoking the fires when they are already hot.

But as ever, the question is: is WeWork India actually a right investment for retail investors, particularly at the IPO stage?

That’s because WeWork’s issue is a 100% offer for sale (OFS), which should result in a profitable exit for existing investors, the Embassy Group and 1 Ariel Way Tenant, an affiliate of WeWork Inc.

Retail investors would be right in having concerns about WeWork India’s ability to fund its future growth, especially given its heavy lease obligations, as that is its primary business model.

Despite reporting a restated profit of INR 174.6 Cr in H1 FY25, the company continues to have a negative net worth, the company continues to carry a negative net worth and remains highly concentrated in just two cities, Bengaluru and Mumbai, which together account for over 70% of revenue. So any concerns one might have about WeWork India’s IPO are not unwarranted.

Before we get to those, let’s briefly look at why coworking companies are rushing to public markets to raise funds.

According to Knight Frank India’s 2025 H1 report, the first half of 2025 saw remarkable growth in the flexible workspace sector, with operators leasing 10.2 Mn sq ft—a 43% year-on-year increase. Co-working spaces made up a significant 76% of total flex space absorption Organisational priorities have evidently changed in the post-pandemic economy, with many preferring to go for coworking spaces rather than leasing dedicated space.

Meanwhile, the demand from startups and SMEs has also grown due to the heavy investments in these segments, even outside the metros, and in Tier II and Tier III cities. Unsurprisingly, coworking........

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