The WeWork Story: From Visionary Heights to Bankruptcy-and a New Chapter in India

The Dream Begins

In the aftermath of the 2008 financial crisis, Adam Neumann, an Israeli entrepreneur, and Miguel McKelvey, an American architect, saw an opportunity in the empty office spaces scattered across New York City. They envisioned a new kind of workspace-one that would foster community, collaboration, and flexibility for freelancers, startups, and even large enterprises. After a successful first venture called GreenDesk, the duo sold that business and, in 2010, launched WeWork, opening their first location in SoHo, Manhattan.

WeWork quickly became more than just a place to rent a desk. It was a movement-a promise to “create environments where people and companies come together and do their best work”. The company’s spaces were designed with glass walls, stocked fridges, and a vibrant energy that attracted thousands of young entrepreneurs. By 2014, WeWork was the fastest-growing lessee of office space in New York, with investors like J.P. Morgan, Goldman Sachs, and Benchmark poured in hundreds of millions of dollars.

The Meteoric Rise

Fueled by charismatic leadership and a grand vision, WeWork expanded at breakneck speed. By 2017, it was valued at $20 billion, and by 2019, its valuation soared to $47 billion, making it one of the most valuable startups in the world. The company opened locations in London, Israel, China, and Southeast Asia, and launched initiatives like WeWork Labs to nurture early-stage startups. Its business model-leasing large office spaces, transforming them, and subletting to members-seemed revolutionary.

Cracks in the Foundation

But beneath the surface, trouble was brewing. WeWork’s rapid expansion was fueled by massive losses and unsustainable cash burn. The company signed long-term leases but offered short-term memberships, exposing it to huge financial risk if demand dropped. Adam Neumann’s leadership style, marked by grandiosity and questionable governance, led to internal chaos and investor unease.

In 2019, WeWork’s attempt to go public unraveled spectacularly. The IPO filings revealed staggering losses, conflicts of interest, and erratic management. Investors balked, the IPO was pulled, and Neumann was ousted as CEO. SoftBank, its largest investor, slashed WeWork’s valuation from $47 billion to less than $8 billion.

The Final Fall

The COVID-19 pandemic dealt the final blow. As companies shifted to remote work, demand for coworking spaces plummeted. Occupancy rates fell, members canceled contracts, and WeWork’s financial situation became dire. Despite efforts to restructure debt, close underperforming locations, and renegotiate leases, the company couldn’t recover. In November 2023, WeWork filed for Chapter 11 bankruptcy, its stock price reduced to pennies.

“WeWork gained a skyrocketed valuation due to its aggressive funding, but not having sustainable profits… After the pandemic, when many members decided to work from home and cancelled their rental contracts with WeWork, the company started facing losses and negative cash flows casting significant doubts over the ability to continue as a going concern.”

WeWork India: A Different Story

A Unique Beginning

WeWork’s entry into India was unlike its global expansion. Instead of going solo, WeWork partnered with Embassy Group, one of India’s top real estate developers, in 2017. The initial plan was simple: the Embassy would lease buildings to WeWork, which would handle operations. But as the Indian coworking market evolved, this arrangement quickly transformed into a full-fledged joint venture, with Embassy investing $25 million as initial capital and taking a hands-on role in building the business.

Strategic Growth and Local Adaptation

WeWork India launched its first hub in Bengaluru in July 2017, a 140,000 sq. ft. space with a 90% occupancy rate. The second location in Mumbai followed just a month later, reflecting the surging demand for flexible workspaces among Indian startups, freelancers, and enterprises. The company focused on Tier I cities-Bengaluru, Mumbai, Delhi, and later Hyderabad and Gurugram-where demand was strongest.

Unlike the global model, WeWork India adopted an asset-light approach, often using revenue-share agreements with landlords rather than fixed leases. This allowed the company to share both risks and rewards with property owners, keeping costs flexible and scaling sustainably.

Challenges and Resilience

While the global WeWork brand struggled with overexpansion, mounting losses, and eventually bankruptcy, WeWork India charted a different course. The Indian entity prioritized profitability, operational efficiency, and careful market selection. Even during the COVID-19 pandemic, when demand for office space plummeted worldwide, WeWork India managed to adapt by offering flexible products like on-demand workspaces and hybrid office solutions.

Competition was fierce, with local players like Awfis, Indiqube, and Smartworks vying for market share. But WeWork India’s strong brand, strategic locations, and diversified offerings-private office suites, managed spaces, subscriptions, and pay-per-use options-helped it maintain high occupancy rates (over 80%) and steady growth.

The Road to IPO

In 2024, Embassy Group moved to acquire 100% ownership of WeWork India, planning to divest a 40% stake to investors like Enam Group and A91 Partners before taking the company public. The IPO process is expected to begin by the end of the year, with Embassy retaining a majority stake and WeWork India continuing to grow its business and brand presence.

Local partnership and adaptation were crucial for success in India, allowing WeWork India to navigate real estate complexities and market dynamics.
Asset-light, flexible business models helped manage risk and scale sustainably, in contrast to the global parent’s heavy fixed-lease commitments.
Operational independence insulated WeWork India from the financial troubles and bankruptcy of its US-based parent, enabling continued growth and profitability.

Legacy and Future

Today, WeWork India stands as a rare outlier: a profitable, fast-growing coworking giant in a market where its global counterpart faltered. Its journey highlights the power of local expertise, prudent management, and the ability to adapt global ideas to Indian realities. As it prepares for its IPO, WeWork India’s story is not just about survival-it’s about thriving against the odds, and setting a new standard for flexible workspaces in India.

Key Insights and Lessons

Vision and branding can drive rapid growth, but without financial discipline, even the most promising startups can collapse.
Overexpansion, poor governance, and lack of sustainable profits were at the heart of WeWork’s downfall.
The pandemic exposed the vulnerability of WeWork’s business model, which relied on long-term liabilities and short-term revenues.
In India, local ownership, prudent management, and adaptation to market realities allowed WeWork India to thrive even as the global brand faltered.

1. Sustainable Business Models Are Essential

WeWork’s asset-heavy, long-term lease model in the US led to high fixed costs and cash burn, which proved unsustainable when growth slowed or market conditions changed. In contrast, WeWork India adopted an asset-light, partnership-driven model, sharing risks and rewards with landlords and enabling more cost-effective, scalable expansion.

2. Strong Corporate Governance and Leadership Matter
WeWork’s US downfall was accelerated by questionable leadership, self-dealing, and lack of transparency. Founder Adam Neumann’s unchecked control and erratic decisions eroded investor confidence and led to public scrutiny. In India, joint ventures with established real estate partners brought stronger governance and accountability, building trust with stakeholders.

3. Localization and Cultural Sensitivity Drive Success
WeWork’s “one-size-fits-all” approach faltered in the US, while its Indian arm succeeded by localizing offerings-such as providing cafeterias and understanding cultural nuances-and tailoring spaces to Indian business needs. This helped attract a broader range of clients, from startups to large enterprises.

4. Agility and Adaptability Provide Competitive Advantage
The US entity struggled to adapt during the pandemic, but WeWork India responded quickly-renegotiating leases, cutting costs, and introducing flexible membership plans. This agility enabled it to weather crises and maintain high occupancy rates even during downturns.

5. Realistic Valuations and Focused Ambitions Prevent Overreach
WeWork’s US business was overvalued, driven by ambitions beyond its core real estate model, such as ventures into education and residential spaces. These distractions and inflated expectations contributed to its collapse. In India, the focus remained on core strengths-premium flexible workspaces in top cities-leading to steady growth and profitability.

6. Customer Experience and Market Positioning Are Crucial
WeWork India’s focus on customer experience, premium pricing, and targeting high-value enterprise clients (rather than just freelancers) ensured stable, recurring revenue and high occupancy. This selective market approach, concentrating on metro cities with strong demand, minimized risk and maximized returns.

7. Partnerships and Strategic Alliances Reduce Risk
Strategic partnerships with local real estate giants (like Embassy Group) allowed WeWork India to minimize direct property ownership, reduce capital expenditure, and leverage local expertise-key factors in its resilience and success.

WeWork’s journey underscores that sustainable models, strong governance, local adaptation, and strategic focus are vital for long-term startup success. The Indian experience, in particular, demonstrates how understanding local dynamics and building the right partnerships can turn global adversity into local opportunity.

WeWork’s rise and fall is a cautionary tale for startups everywhere-a story of ambition, hubris, and the importance of balancing vision with execution. In India, however, the WeWork brand continues to flourish, a testament to the power of local adaptation and strategic partnership. As WeWork India eyes a public listing, its journey stands as both a warning and an inspiration for the next generation of entrepreneurs.

So, MAMEKAM LEARNING is an Indian company focused on revolutionizing skill development in sales and marketing through practical training and mentorship. Like WeWork, which aimed to disrupt the traditional office model by fostering community and innovation, Vamsharaj is transforming the way professionals build their careers-placing mentorship and real-world learning at the core of its approach.

Key parallels between Mamekam Learning and WeWork’s vision:

1. Both prioritize community: WeWork builds physical communities for professionals; Mamekam Learning builds mentorship-driven learning communities.

2. Both leverage innovation: WeWork uses technology and design to change workspaces; Mamekam Learning integrates technology into skill development and career growth.

3. Both empower individuals: WeWork enables freelancers and startups to access premium office spaces; Mamekam Learning empowers learners to unlock their potential with guidance from industry leaders.

If you’re interested in how Mamekam Learning can help you build your career or want to learn sales and marketing. Want to know more about Mamekam Learning