WeWork is a commercial real estate company based out of the United States of America that works to provide shared real estate workspaces to start-ups and other enterprises. The company is known to design and develop virtual and real estate shared workspaces for small to medium to big companies.
Recently on a Zoom video call, CEO Sandeep Mathrani mentions his plans to revisit an Initial Public Offering (IPO) after last year’s tragic failure. The company business is finally turning profitable and aims to push for an IPO in 2021.
After Softbank Group from Japan took control over WeWork’s operations, the real-estate sharing company made some changes like replacing complete management, removing unmotivated staff members and renegotiated lease agreements with clients. CEO Mathrani says that the company is bouncing back 100% in several markets of China, Singapore, South Korea and specific Asian markets as well.
Furthermore, “Nazar Na Lag Jaaye” expression was used by CEO Mathrani during the conference after he says that the company shall take one single step at a time, hit profitable margins and then revisit the company’s plans for Initial Public Offering. The Hindi expression is used to convey that he did not want any evil eyes on the company’s business strategy after 2019’s losses and failure.
After a step-by-step growth strategy, once the company reaches at the stage where IPO happens, all separate franchises and units of WeWork will merge with the parent company as per the existing agreement. After the tragic failure of last year, Sandeep Mathrani mentions that the company’s valuations have gone down by approximately 90% from its highest USD 50 billion worth.
According to sources, Co-Founder, WeWork- Adam Neumann hired Sandeep Mathrani to bring the company back up on its feet after the controversial loss of 2019. Having considered the success of Mathrani’s previous experience in bringing General Growth properties out of bankruptcy, WeWork needed a man just like Sandeep Mathrani. He took over as CEO just at the beginning of the COVID-19 lockdowns began in India and clients were closing ties with the company.
Mr Mathranin mentioned during the Zoom conference that WeWork is all set and on its track to hit free cash flow profitability by next year, 2021. Furthermore, he mentions how the company has been making profitable changes in their workspace by removing over 8000 employees and saving up to USD 1 billion as annual savings.
WeWork has been reviewing all of its global locations and about 75% have been successful and the company is looking forward to a profitable business ahead of 2021.