WeWork raises $500m for China unit

WeWork’s new investment will support expansion in China, where it launched in 2016. The company currently has 40 locations across three cities, with 20,000 members, and plans to enter six new cities by the end of 2018, including Shenzhen, Suzhou, Hangzhou, Chengdu, Nanjing, and Wuhan.

WeWork provides shared office space for entrepreneurs, freelancers, and large corporations. Earlier this year it acquired PE-backed industry peer Naked Hub in a deal reportedly worth about $400 million. This followed the purchase of Singapore-based co-working company Spacemob for an undisclosed amount last year.

The new investment comes a year after the $500 million Series A round led by Hony and SoftBank that led to the creation of the China unit. SoftBank and the Vision Fund committed an additional $4.4 billion to WeWork last August, comprising a $3 billion investment in the parent company and $1.4 billion in commitments to the company’s China, Japan, and Southeast Asia and Korea units.

Hony first backed in WeWork in 2016, leading a Series F round for the global business, but with the proceeds earmarked for Asia expansion. The China-focused GP brought in Legend Holdings, Jin Jiang, Greenland Group, and China Oceanwide as co-investors.

WeWork competes in China with UrWork, which is backed by several private equity and strategic players. UrWork merged last year with rival New Space to form an entity worth RMB9 billion ($1.3 billion).

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• Topics
• Greater China
• Technology
• Real estate
• Expansion
• China
• Softbank
• Trustbridge
• Temasek Holdings
• Hony Capital
• TMT