Pramugdha Mamgain | December 22, 2017
China’s largest co-working space operator UrWork has raised RMB300 million ($45 million) in a Series C funding round led by Qianhai Wutong Mergers and Acquisition Funds, an M&A fund backed by regional equity exchange Qianhai Equity Exchange, it announced on December 22.
The new financing round, which has been raised almost four months after the pre-Series C round in August, values the startup at RMB9 billion ($1.3 billion).
CKing Home-Key Investment Group and venture capital firm Context Lab also took part in the round.
Beijing-based UrWork had raised a $179 million (RMB1.2 billion) pre-Series C financing round from a group of Chinese investors including Beijing Capital Land Ltd., Beijing Xingpai Group, Beijing Aikang Group and investment firm Jingrong Holdings in August this year.
Founded in April 2015, UrWork currently operates 78 co-working spaces in 20 major cities across China, as well as in Hong Kong, Taiwan, Singapore, New York and London, according to its website. It plans to establish 160 co-working locations in 32 cities globally within three years, servicing over 8,000 companies with total office space of 700,000 square meters.
UrWork had raised a series of funding rounds this year. In May, UrWork had raised $58 million in a round led by Chinese conglomerate Beijing Xingpai Group. It separately raised RMB200 million ($29 million) from Beijing Aikang Group in July, both of which were considered as part of the pre-Series C funding round. In January, the firm received funding from Ant Financial-affiliate Tianhong Asset Management.
Last year, the start-up secured RMB300 million ($45 million) pre-Series B round from Chinese commercial property developer Yintai Land and Zhongrong International Trust Co., Ltd., and a RMB200 million ($30 million) Series A+ round from undisclosed investors.
Not just China, but co-working office space operators across Asia have become investors’ favourite. The space has also started to see consolidation owing to rapid expansion.
Last month, EV Hive – an affiliate of East Ventures – merged with Clapham Collective, a co-working space based in Medan, North Sumatra, Indonesia. In July this year, naked Hub, the co-working arm of China’s hospitality brand naked Group, and Singapore’s JustCo announced their merger. In April, China’s co-working unicorn UrWork announced its plans to merge with rival New Space.