More money has just been injected into WeWork.
The co-working giant has recently gotten a $1.1 billion loan from its biggest investor, SoftBank, after it cut its cash burn rate by half — down to $671million since the end of last year.
WeWork's business has been significantly impacted by the pandemic, but its financial position remains strong. Quarter revenue has hit $882 million, a 9% increase compared to the previous year.
On top of the new financing of $1.1billion, WeWork still has $4.1billion in cash and unfunded cash commitments to continue to execute on its 5-year plan. It's expected to be cash flow positive in 2021.
With streamlined operations and a positive future outlook, the possibility of an IPO in the coming years could be an eventual possibility.
“Our early efforts to become a more streamlined, cash-conscious organization puts us in a better position to adapt quickly, navigate new realities and deliver our future business objectives,” said Kimberly Ross, chief financial officer of WeWork, in an e-mail.
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Journalist at BEAMSTART. I write about breaking business news in the region.
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