Flexible workspace provider WeWork India announced on Monday it had raised Rs 550 crore from funds managed by BPEA Credit.

The funds will be used for future growth and potential consolidation opportunities, the office space provider says in a statement.

After starting operations in India in 2017 with 100,000 square feet and 2200 members, WeWork India has grown to over 62,000 members and over 6 million square feet in the last five years across 41 locations and six cities in India – Bengaluru, Mumbai, Gurugram, Noida , Hyderabad and Pune.

According to CRISIL Ratings, net occupancy of commercial office space in India will grow 10-15% this fiscal year and next to 28-30 million square feet (msf) and 31-33 msf respectively, as demand increases Employers increasingly prefer employees who work in the Office work, albeit with a certain degree of flexibility. Fiscal 2020 demand will be below pre-pandemic highs of about 42 million square feet, but within sniffing distance of about 34 msf for fiscal 2019, the ratings agency said last week.

“While global recessionary headwinds and slower tech hiring could lead to a possible postponement of leasing plans, thereby dampening demand growth over the next two quarters, the strength of India’s economy and commercial property competitiveness will keep demand drivers intact,” it added .

Earlier this year, WeWork India announced its first profitable quarter, followed by new leasing announcements in key operating cities. The company claims it has become profitable this calendar year, posting sales of 1,300 crore. Currently, the EBITDA jump is 250% from a loss of £120m in 2021 to a profit of £175m in 2022, it says.

“Flexibility is paramount in today’s workforce and BPEA Credit’s investment is a testament to the tremendous growth opportunity for flexible work in India and validates WeWork India’s strong fundamentals and healthy business model. We are focused on driving growth opportunities and strengthening our position as the leading flexible workspace brand with adaptable and innovative solutions for all businesses,” said Karan Virwani, CEO of WeWork India.

WeWork India had raised £750 million through funding from WeWork Global in 2020, which played a crucial role in stabilizing the business during the pandemic. The company also recently made its first investment in Bengaluru-based conferencing and collaboration platform Zoapi, which offers businesses innovative and immersive solutions.

According to WeWork India, its membership portfolio includes 70% companies such as 3M, Honeywell, Dyson and KIA, while 30% includes startups, freelancers and SMEs.