Just a month ago, Chinese coworking operators UrWork and New Spaces announced they were merging.
In January this year, UrWork raised to unicorn status after closing a funding round with RMB 400 million (approximately US$ 58 million). After securing the merger with New Spaces, the market valuation of the merged entity will hit RMB 9 billion (US$ 1.31 billion).
And recent events point to the fact that their valuation is likely to continue rising. China Money Network reported today that:
“Beijing Xingpai Group, a Chinese conglomerate engaged in the sports, real estate and investment business, has led a RMB 800 million (US$ 116) investment round in coworking space start-up UrWork and 5Lmeet, both founded by Mao Daqing, a former real estate executive at China Vanke Co., Ltd.”
Coworking spaces in China have seen an increased influx of investment over the last 12 months. In October, 2016 5Lmeet raised over RMB 400 million (US$ 60 million). In June, 2016 UrWork raised RMB 300 million (US$ 46 million), and about three months before that (March/April 2016) they raised RMB 200 million (US$ 31 million).
The Chinese coworking market has been growing significantly since late 2015, and it’s proving to be a strong, successful, and competitive market for flexible workspace operators.