WeWork India’s IPO Gamble, Flipkart’s Homecoming, and Ather Energy’s Subsidy Sorrow

WeWork India’s IPO reads like a long-promised exit finally finding its window. A ₹3,000-crore offer opening October 3-7, 2025, it is structured as a pure offer-for-sale: 4.63 crore shares sold by Embassy Buildcon LLP and 1 Ariel Way Tenant Ltd, the affiliate of the bankrupt global parent. None of the proceeds go to the company. That design tells you exactly what this listing is: a liquidity event for long-stuck shareholders, not growth capital for fit-outs or debt paydown.

The backdrop is the strongest the sector has ever seen. India’s flex market has matured into a global leader by adoption metrics, with flexible spaces now about 15% of new office leasing and GCCs (Global Capability Centers) reportedly accounting for the overwhelming share of absorption. Awfis’s blockbuster May-2024 IPO was oversubscribed 108x, Smartworks followed with a solid debut, and IndiQube lined up its float - each one absorbing the early “category risk” and setting valuation markers for the next entrant. WeWork India is stepping into a warm pool, not testing the water.

To succeed in public markets, the company must convince investors it is not the U.S. story with an Indian accent. On that score, structure matters: WeWork India is majority-owned and promoted by Embassy Group (about 76% pre-IPO), operates under an exclusive brand licence, and was insulated from the U.S. Chapter 11 mess. Operationally it skews to Grade-A campuses in core districts (roughly 93% of its portfolio), drives high occupancy (reported north of 80%), and courts sticky enterprise demand - about three-quarters of net membership fees come from large corporates, with a strong international client mix. That focus supports premium pricing - the reported net ARPM in H1 FY25 was ~₹19,850; and scale revenue of ₹1,949.2 crore in FY25.

But peel back the headline “profit” and the fragility shows. The FY25 PAT of ₹128.2 crore depends on a one-time, non-operational deferred tax gain of ₹285.7 crore; strip that out and you’re looking at a pre-tax loss of about ₹156.7 crore. Net worth remained negative into H1 FY25 and the lease-heavy model carries multi-thousand-crore fixed obligations that only work if occupancy and pricing stay taut. A January-2024 ₹500-crore rights issue helped stabilize, but the IPO’s OFS structure adds no new oxygen - leaving expansion, fit-outs, and tech to internal cash flows in a period when competitors have just reloaded with fresh public money.

That tension, category tailwinds versus balance-sheet stiffness, frames the real question for new buyers. The timing flatters the sellers: after a failed private deal in 2024 at a low implied valuation, the promoters can now crystallize value in public markets buoyed by peer successes and “flex-as-mainstream” sentiment. Embassy can derisk a portion while keeping control; the global affiliate can monetize a piece to feed its post-bankruptcy agenda. For public investors, however, the residual risks don’t vanish at listing: micro-market oversupply in major metros, geographic concentration in Bengaluru/Mumbai, brand overhang from the global saga, and a model with expensive fixed leases that leaves little room for error if desk rates soften or occupancy dips.

If you separate the macro from the micro, the investment case is straightforward. The macro is the best it’s been: hybrid work entrenched, GCC expansion unrelenting, and a public market that now understands managed offices. The micro is a three-point test that will decide the stock after the opening print: can WeWork India hold occupancy above the 80% line across a Grade-A footprint; can it deliver sustained pre-tax profitability without non-operational crutches; and can it fund expansion at pace in a capital-intensive category without the benefit of fresh IPO proceeds. The listing gives the industry another benchmark and the promoters an exit lane. Whether it gives public investors compounding returns will depend on execution that finally outlasts the headlines.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Apne Desh Ki Baat Alag Hoti Hai”: Flipkart Gets Singapore Court’s Nod To Reverse Flip To India

Flipkart just got the green light from a Singapore court to move its headquarters back to India, marking a big step in its long-awaited “reverse flip.” The ecommerce giant wants the process wrapped up this year as it clears the path for a public listing around 2026.

But before the celebrations, Flipkart still has hurdles to cross including a fat tax bill, mounting losses, and quick-commerce rivals snapping at its heels.

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“Mai Dil Mein Aata Hoon”: Ather Energy to delay Rs 26 Cr subsidy claims amidst rare earth magnet supply crisis

Ather Energy is hitting the brakes on claiming ₹26 crore in subsidies as it struggles with a supply crunch of rare earth magnets after China’s export ban.

The EV maker admitted it strayed from local sourcing rules under the PM E-DRIVE scheme but is now seeking a temporary exemption. To steer clear of future roadblocks, Ather has even built a rare earth-free motor, already certified by India’s automotive regulator.

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“Batti Gul, Meter Chalu”: IPO-Bound Aye Finance Says NACH Data Exposed Due To Misconfiguration By Vendor

IPO-bound Aye Finance has admitted that customer NACH data was exposed after a vendor’s cloud misconfiguration left lakhs of files publicly accessible.

The lapse came from its integration partner Nupay, which has since fixed the issue. With over 2.7 lakh sensitive transaction files briefly out in the open, the timing is awkward as Aye gears up for its market debut.

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“Bade Dukh Ki Baat Hai”: CCPA Penalizes FirstCry For Misleading Ads & Unfair Trade Practices

The Central Consumer Protection Authority has slapped FirstCry with a ₹2 lakh fine for misleading ads and unfair trade practices.

The order cites false price claims on its platform, ruling them as violations under the Consumer Protection Act, 2019. For India’s biggest baby products e-tailer, this penalty is a sharp reminder that consumer trust is no child’s play.

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“Aaiye Aapka Intezaar Tha”: ONDC To Likely Rope In Paytm’s Rohit Lohia As CBO

ONDC is set to bring in Paytm’s Rohit Lohia as its new Chief Business Officer, filling the vacancy left after Shireesh Joshi’s exit in March.

Lohia, who has driven strategy and growth at Paytm, also sat on the boards of Paytm Money and QorQl. His arrival comes at a crucial time, with ONDC battling falling retail transactions and a string of senior-level departures.

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“Sapne Sureele Sapne”: Peak XV's Surge selects 23 startups for 11th cohort

Peak XV Partners has unveiled the 11th cohort of its early-stage accelerator Surge, backing 23 startups this time.

The fresh batch spans AI, fintech, and consumer tech, each receiving $3 million in seed capital. Along with the funding, founders get access to hands-on workshops and a tight-knit community to fast-track their growth journeys.

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“Janmo Ke Saathi”: IIT Indore Arm, DHN Launch HealthTech Startup Challenge

IIT Indore’s Drishti CPS Foundation has teamed up with DHN to launch the HealthTech Innovation Challenge 2025.

The initiative will scout promising startups building tech-driven healthcare solutions and give them access to mentorship, incubation, and pilot opportunities. By linking academia, startups, and industry, the challenge aims to spark practical innovations for India’s healthcare needs.

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1. Vedantu has raised $11 million in an ongoing round to double down on AI, tech, and adaptive content for sharper personalization. The edtech, fresh off back-to-back profitable quarters, is also in talks with investors for more capital and secondary exits.
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2. KisanKonnect has raised ₹72 crore in a round led by Bajaj Finserv Group to scale its fresh fruits and vegetables business. The startup will use the funds to boost its tech and supply chain while expanding both online and offline across Mumbai and Pune.
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3. Cloud kitchen startup Curefoods has secured ₹160 crore from 3State Ventures ahead of its IPO. The funding values the Bengaluru-based firm at ₹4,000 crore as it gears up for an ₹800 crore public listing.
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