Wework India Management Ltd IPO

Proceedings had been initiated by the Enforcement Directorate against our Promoter and Chairman, Jitendra Mohandas Virwani in 2014 under the Prevention of Money Laundering Act, 2002 and any adverse outcome in this proceeding may adversely impact our business, reputation, financial condition and results of operations.

Our Group Company, Embassy Office Parks Management Services Private Limited ("EOPMSPL") has received show cause notices under the Securities and Exchange Board of India Act, 1992 which may have adverse impact on our Company.

One of our Promoters has pledged their Equity Shares with a security trustee under our promoter borrowing arrangements. Any exercise by lenders of such pledges would dilute the shareholding of the Promoters which may adversely affect our business and the share price of the Equity Shares.

We will not receive any proceeds from the Offer for Sale portion.

We have incurred net losses, had negative Restated Earnings / (loss) per equity share - Basic and negative Restated Earnings / (Loss) per equity share - Diluted in the three months ended June 30, 2025, the three months ended June 30, 2024, Fiscals 2024 and 2023 and had net decrease in cash and cash equivalents in the three months ended June 30, 2025, the three months ended June 30, 2024 and Fiscal 2024, and may continue to do so in the future. If we are unable to generate and sustain increased revenues while managing our expenses to achieve profitability, our business, results of operations, cash flows and financial condition may be adversely impacted.

A downgrade in our credit rating could adversely affect our ability to raise capital in the future.

During the three months ended June 30, 2025 and 2024, and Fiscals 2025, 2024 and 2023, we derived Rs.3,050.21 million, Rs.2,804.61 million, Rs.11,811.66 million, Rs.10,039.02 million and Rs.8,127.18 million, comprising 66.25%, 70.02%, 70.04%, 68.80% and 71.04% of our Net Membership Fees, respectively from our Centres located in Bengaluru and Mumbai. Any adverse developments affecting such locations and Centres could have an adverse effect on our business, results of operations and financial condition.

Our Revenue from Operations increased by 26.67% from ?13,145.18 million in Fiscal 2023 to ?16,651.36 million in Fiscal 2024, and also increased by 17.06% from ?16,651.36 million in Fiscal 2024 to Rs.19,492.11 million in Fiscal 2025, and increased by 19.32% from Rs.4,486.51 million in the three months ended June 30, 2024 to Rs.5,353.10 million in the three months ended June 30, 2025. We may not be successful in managing our growth effectively. Our growth may be negatively impacted by macroeconomic factors, such as a global/domestic recession, reduction in purchasing power due to inflation and the emergence of alternative destinations.

We have entered into long-term fixed cost lease agreements with our landlords for an aggregate Leasable Area for Operational Centres of 7.35 million square feet across 60 of our 68 Operational Centres in eight cities, as at June 30, 2025. If we are unable to pay the lease rentals to our landlords, our landlords refuse to renew our lease agreements or our Centres suffer physical damage, our business, results of operations, cash flows and profitability may be adversely impacted.

Any disruptions to the operations of WeWork International Limited or any events that may cause adverse impacts on the WeWork Brand could have adverse impacts on our reputation, business, results of operations and financial condition.