China's co-working Unicorn ucommune completes US$43.5mn funding, led by Prosperity Holdings
Aug 14, 2018, 02:06 ET
BEIJING, Aug. 14, 2018 /PRNewswire/ -- China's largest co-working space provider ucommune announced today to have raised 300mn RMB (US$43.5mn) in a new round funding, prompting the market valuation to US$1.8bn. This round was led by Prosperity Holdings, which also led the pre-C round last year in July.
"This new round of funding cements ucommune's position as the absolute leading co-working space provider in Asia," said ucommune founder and chairman Dr. Mao Daqing, a real estate veteran with over 23 years of experience under his belt, including in executive roles at CapitaLand and Vanke China. He commented that the investment will be deployed to drive further global expansion and service upgrading.
"The concept of coworking has evolved tremendously over the last two years to one that compasses traditional rental, bespoke design, community networking and new retail. Ucommune has evolved from a single space provider to an integrated value-added experience where people from all backgrounds and walks of life can convene, connect and innovate together," said Dr. Mao. "Through this partnership with RK Properties and Prosperity Holdings, we seek to further upgrade our integrated coworking experience through tapping into the community synergy and the potential of commercial contexts."
According to Colliers International's research of 200 leasing clients, over 56% are using coworking spaces and over 90% are considering adopting coworking as their office solution. After experiencing a fast-speed, low-volume period, the industry is entering into a high-speed, high-volume phase.
RK Properties, also known as Road King Real Estate Group Co., Ltd., established in 2003, is the flagship company owned by RK Infrastructure Co., Ltd. (www.roadking.com.hk), primarily focusing on the investment, development and sales of residential projects, large-scale integrated settlements, and villas. Their current portfolio of real estate portfolio investment is mainly located in the Yangtze River Delta, Bohai Bay and Zhuhai-Macau Bay area, with a land bank of over 8.3 million square meters.
Prosperity Holdings was founded in Shanghai in 2011 and has since been focusing on asset diversification and management including property investment, corporate equity investment, securities and bonds and investment advisory. Its investment portfolio encompasses residential property, commercial property, healthcare, new energy, clean tech, supply chain, entertainment and art. Through the strategic investment, Prosperity Holdings will support ucommune with its further roll-out in South East Asia, as well as developing innovative service products that add more value to the ucommune members.
The announcement comes after ucommune's fourth acquisition this year and is a clear indication of the brand's commitment to grow its global footprint. Ucommune has achieved positive cashflow through direct management and property custody management, becoming the first coworking space that has achieved positive cash flow in China. Coworking income during the first half of 2018 is 2.5 times that of 2017. In the same period, which was before merging Workingdom, while the income of the second half in 2018 is set to grow even further. Ucommune has been dedicating itself to the building and nurturing of a community eco-system and the surging income is to certain extent an indication that the ecosystem model has started to reap rewards. The source of income is two-fold: online booking and offline service (bespoke design and peripheral products). From Jan to June 2018, ucommune has increased 2.5mln sqf of managed space, to reach a total managed area of 6.2mln sqf.
Ucommune has established itself as a co-working space leader and integrated service solution provider within just three years. Ucommune opened its first office in Singapore within two months of its launch in April 2018 at JTC Launch Pad, One North, and is opening its Suntec Tower II space covering a total area of 20,689 square feet today. It has grown to cover over 160 locations in over 35 cities globally, including but not limited to Singapore, New York, Beijing, Taipei, Hongkong, Shanghai, Shenzhen, Tibet, servicing over 8,000 enterprises and 150,000 individual members in total.
About ucommune:
Founded in 2015 by real-estate veteran Dr. Mao Daqing, Ucommune (is a leading co-working space provider in China offering long-term leasing, hot desk and corporate-customization solutions and professional services across a broad spectrum for small-to-medium enterprises. Backed by renowned investors such as Sequoia Capital, Zhen Fund, Noah Wealth Management, Sinovation Ventures, Ucommune posts a valuation of U.S. $1.8 billion after D round and acquisition of Woo Space, Wedo Space, and Workingdom, as of July 2018 and has grown to cover over 160 locations in over 35 cities globally, including but limited to Singapore, New York, Beijing, Taipei, Hongkong, Shanghai, servicing over 8,000 enterprises, 150,000 individual members in total. Ucommune is the largest and most recognised co-working space brand in China.
SOURCE ucommune