China-based shared workspace company UCommune is looking to build its domestic business and is gearing up to expand overseas after closing a $200 million funding round.
UCommune has emerged as WeWork’s biggest rivalry in China. The company says it currently oversees over 200 coworking spaces in 37 cities, while WeWork has a footprint of about 40 locations.
Led by All-Stars Investment with help from Chinese investment bank CEC Capital, the deal is said to give UCommune a valuation of $3 billion, a jump from their previous valuation of $1.8 billion just back in August. Coworking in China has seen its ups and downs, which gave Ucommune a chance to leave an impression on the struggling market.
“That presented an opportunity for Ucommune, which has aggressively gone after growth in China with a consolidation strategy that has seen it acquire no fewer than seven companies this year.”
Ucommune is now seeking to expand its business throughout 350 cities in over 40 countries, with the hopes of doubling its coworking capacity from 100,000 to 200,000 in the following three years.
Despite WeWork being the top dog in global coworking spaces, Ucommune has a headstart in southeast Asia.