China’s largest co-working office space operator UrWork, founded in 2015, has raised a RMB300 million (US$45 million) series C financing round at RMB9 billion (US$1.3 billion) valuation. The new financing round came four months after the two-year-old start-up raised a RMB1.2 billion (US$179 million) pre-C round in August.
Qianhai Wutong Mergers and Acquisition Funds, a M&A fund backed by regional equity exchange Qianhai Equity Exchange, led the latest round. CKing Home-Key Investment Group and venture capital firm Context Lab also participated in the round, according to a company announcement posted on UrWork’s Wechat channel.
"UrWork is a leading company in the co-working space industry in China, and has played an important role in China’s new economy upgrade," said Xie Wenli, president at Qianhai Wutong M&A Funds."Qianhai Wutong will leverage its resources to support UrWork’s development and push the transform of Chinese economy."
In August, UrWork just completed a RMB1.2 billion (US$179 million) pre-C round from a group of Chinese investors, including property developer Beijing Capital Land Ltd., Beijing Xingpai Group, Beijing Aikang Group and investment firm Jingrong Holdings.
Founded in 2015, UrWork, a company listed on China Money Network’s China Unicorn Ranking, agreed to merge with peer New Space, a Beijing-based incubator and co-working space firm, to compete with numerous local players and WeWork China, the local company set up by US$20 billion global co-working giant WeWork.
WeWork China also raised US$500 million from Hony Capital and Japan’s SoftBank Group Corp. in July to fuel its growth in the Chinese market. WeWork China currently operates 12 co-working spaces in the country in Beijing and Shanghai.
As of this June, UrWork operates 78 co-working spaces in 20 major cities across mainland China, Hong Kong, Taiwan, Singapore, New York and London. It plans to have 160 co-working space, with a total of 700,000 square meter in surface area in 32 cities globally to provide 100,000 office seats in the next three years, the company says.
UrWork has raised seven financing rounds so far. This August, it raised a RMB1.2 billion (US$179 million) pre-C financing round. Seven months before that, it completed a RMB400 million (US$58 million) round from Tianhong Asset Management Co., Ltd., a fund management firm affiliated with Ant Financial, Chinese property developer Junfa Group and a number of other Chinese companies.
In 2016, it received a RMB300 million (US$45 million) pre-B round from Chinese commercial property developer Yintai Land and Zhongrong International Trust Co., Ltd., as well as a RMB200 million (US$30 million) series A+ round from undisclosed investors.
It also raised an over RMB200 million (US$30 million) series A round from Zhongtouhanfu and Gopher Asset Management, and an angel round worth tens of millions of RMB from Sequoia Capital China, Zhen Fund and Sinovation Ventures.