Meet Indian-Origin Billionaire Anant Yardi, Who Plans To Revive Bankrupt Co-working Giant WeWork
Indian-born software mogul Anant Yardi has assumed the role of CEO at WeWork on May 30th, as per a report by Benzinga. This change came after a federal bankruptcy court ruled to transfer control of the co-working company to its creditors.
Yardi, an engineer who migrated from India in 1968, has amassed a multibillion-dollar wealth over forty years through his firm, Yardi Systems, according to the Financial Times. This family-owned enterprise focuses on property management software and achieves nearly $3 billion(Rs 25,000 crore approx) in yearly revenue.
Yardi Invested Rs 1670 Crore In WeWork Almost Two Years Ago
Less than two years ago, Yardi channeled over $200 million into WeWork through an undisclosed entity. Recently, he pledged an additional $337.5 million(Rs 2,800 Crore approx) to fend off a bid from former WeWork CEO Adam Neumann, who aimed to reclaim leadership of the company.
Who Is Anant Yardi?
Yardi, a modest yet extraordinarily successful entrepreneur, is counted among the software industry's wealthiest figures. His journey began in 1963 when he achieved the second spot in the IIT JEE, a prestigious engineering entrance exam in India. He graduated from IIT Delhi.
After moving to the United States in 1968, Yardi founded Yardi Systems in 1984, specializing in property management software for residential and commercial landlords. Today, Yardi Systems rakes in nearly $3 billion in yearly revenue, catapulting him into the billionaire club.
Prior to launching his own venture, he spent 14 years at the Burroughs Corporation. During his tenure, he played a pivotal role in developing programming methodologies and overseeing systems development.
Also Read:?WeWork Files For Bankruptcy: What Happens To Its Offices In India?
What Is WeWork?
Founded in 2010, WeWork aimed to revolutionize the office market by leasing large properties for longer periods and subletting them to multiple smaller businesses on more flexible, shorter arrangements. Its innovative approach, free from property ownership constraints, positioned it as a disruptor in the industry. WeWork experienced swift expansion, leading to increased revenue but also significant losses.
Who Is The Founder Of WeWork?
Adam Neumann, along with his wife Rebekah Neumann and Miguel McKelvey, co-founded WeWork, which became the most valuable startup in the US, worth $47 billion. Neumann's ambitious expansion plans and eccentric behavior, centered around his vision of "elevating the world's consciousness," led to his removal and the failure of an IPO in 2019. Despite facing bankruptcy, Neumann expressed optimism about WeWork's potential to reorganize successfully with the right strategy and team.
Neumann demonstrated his strong resolve to regain control of the bankrupt company by proposing a $600 million bid. Despite his previous leadership leading to a significant decline in WeWork's valuation, from $47 billion to near collapse, Neumann publicly acknowledged his mistakes and expressed eagerness to apply the lessons learned to future endeavors.
Also Read :?From Adani-Hindenburg Saga To WeWork's Bankruptcy: 7 Shocking Business Controversies Of 2023
What Went Wrong For WeWork?
In 2019, WeWork's IPO launch with Neumann as CEO encountered hurdles due to investor worries about losses and governance lapses. By October 2021, its worth had dropped to $10 billion before it went public through a merger. The bankruptcy filing followed challenges from expensive leases and client cancellations during the pandemic, worsened by the surge in remote work. Despite lease renegotiation attempts, WeWork grappled with $13.3 billion in long-term lease obligations as of June.
The ascent and decline of the company inspired a television series titled "WeCrashed," featuring Jared Leto portraying Neumann and Anne Hathaway portraying Rebekah.
What¡¯s Next For WeWork & What Are Yardi¡¯s Plans?
New Jersey district bankruptcy court Judge John Sherwood is poised to approve a reorganization plan, aimed at erasing $4 billion in WeWork's current loans and bonds. This marks the culmination of a seven-month endeavor that slashed the company's rent obligations by $12 billion.
Yardi intends to guide WeWork towards focusing on small businesses and integrating hotel-like technologies such as real-time bookings. Despite the recent challenges faced by the company, Yardi maintains a positive outlook on its future, ¡°If there were doubts, I think we would've been much more cautious.¡±
