WeWork India, a coworking startup preparing for an IPO, reported its inaugural profitable year in FY25, with a profit after tax (PAT) of INR 128.2 Cr compared to a loss of INR 135.7 Cr in the prior fiscal year.  During the review period, its operating revenue increased by 17% to INR 1,949.2 Cr from INR 1,665.1 Cr in FY24.

The startup’s MCA filings indicate that it became profitable in FY25, supported by a deferred tax gain of INR 285.7 Cr.  During the prior fiscal year, this value was INR 34.2 Lakh.

If it weren’t for the gains on deferred tax, WeWork India would have maintained its streak of negative performance.  Significantly, the startup owned by the Embassy Group noted a pre-tax loss of INR 156.7 Cr in FY25, marking a 15% rise from INR 136 Cr in FY24.

Related: Paytm Target Price Raised to ₹1,200, Bernstein Bullish on Fintech Major

A month after the Securities and Exchange Board of India (SEBI) approved its draft red herring prospectus (DRHP), the startup released its FY25 report.  Its IPO will consist exclusively of an offer for sale (OFS) of up to 4.4 crore equity shares.

The parent entity, Embassy Buildon LLP, intends to divest 3.3 crore shares, while the remaining shares will be sold by WeWork’s affiliate, 1 Ariel Way Tenant Limited.

According to the DRHP, the startup recorded a deferred tax gain of INR 235.3 Cr in H1 of FY25.  Thanks to the substantial tax gains, WeWork India reported a net profit of INR 174.6 Cr in H1 FY25.  During this timeframe, its revenue was INR 918.2 Cr, and the loss before tax amounted to INR 60.4 Cr.

WeWork India aims to be the fourth publicly listed coworking space provider in the country, following Awfis, Smartworks, and IndiQube.  Alongside WeWork India, DevX, which is based in Ahmedabad, is also pending SEBI approval for its IPO.

The rush to the bourses is fuelled by a rapid growth in the Indian coworking space market, which is projected to grow from $2 billion in 2025 to nearly $3 billion by 2030, driven by the growing adoption of hybrid work models and increasing demand from startups, freelancers, enterprises, and global capability centers (GCCs).

Depreciation & Amortisation Expense: As a real estate company, this represented WeWork India’s largest cost.  In FY25, depreciation and amortization expenses rose by 11% to INR 823.7 Cr, compared to INR 744.1 Cr in the prior year.

Finance Cost: Expenditure in this category increased by 18%, amounting to INR 597.8 Cr, compared to INR 507.7 Cr in FY24.

Operating Expenses: During the year in review, expenses in this category rose by 15%, reaching INR 467.7 Cr compared to INR 407.2 Cr in FY24.

Employee Benefits Expense: WeWork India experienced a 16% increase in employee costs, rising from INR 133.9 Cr to INR 155 Cr in FY24.