WeWork buys PE-backed Naked Hub in Asia expansion drive
US-based co-working space operator WeWork has acquired industry peer Naked Hub, which is backed by Hong Kong-based Gaw Capital Partners, as part of a continued expansion in China and Southeast Asia.
Terms of the transaction were not disclosed but Bloomberg reported that it was worth about $400 million.
Naked Hub was established in 2015 by Grant Horsfield and Delphine Yip-Horsfield as part of hospitality brand Naked Group. It started with six centers in Shanghai and has since grown to a total of 24 locations across Asia including Beijing, Hong Kong, Hanoi and Ho Chi Minh City, hosting over 10,000 users.
Naked Hub previously raised a $33 million Series B round led by Gaw Capital in 2016. Last year, it announced a merger with Singapore-based JustCo, backed by Pinetree Capital and Tikehau Capital, as part of efforts to fend off competition from WeWork in Asia. The deal was reportedly called off.
WeWork launched in mainland China and Hong Kong in 2016. It received $4.4 billion from SoftBank Group and the SoftBank Vision Fund in August last year, including $1.4 billion for the development of local units in China, Southeast Asia, and Korea.
This followed a $500 million investment from SoftBank and Hony Capital in WeWork’s China entity. Hony first backed WeWork in 2016 in a Series E round earmarked for Asia expansion. Last year, WeWork bought Singapore-based co-working company Spacemob for an undisposed sum.
WeWork currently has 10,000 members across more than a dozen locations in China. Following the merger with Naked Hub, it WeWork expects to serve 40,000 users across 40 locations in Greater China, according to a statement.
"In Naked Hub, we have found an equal who shares our thinking about the importance of space, community, design, culture, and technology," said WeWork founder and CEO Adam Neumann. "Together, I believe we will have a profound impact in helping businesses across China grow, scale, and succeed."
WeWork is competing with UrWork in China, which is backed by several PE and strategic players. The company merged with players like New Space, a rival co-working space operator that also acts as an incubator, as part of efforts to consolidate the co-working space.
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