One of WeWork’s biggest rivals, Knotel, has officially been given the title of a unicorn company ahead of We’s initial public offering with a valuation of $1.3 billion.
Knotel closed on a $400 million funding round led by Wafra, the investment arm of the Kuwait government.
“Knotel is building the future of the workplace, and we are excited to welcome a group of investors who believe passionately in our product, vision and ability to execute,” said Amol Sarva CEO of Knotel. “Wafra will help us continue our rapid global expansion and solidify our position as the leader in a fast-growing, trillion-dollar flexible office market.”
Sarva said that the company gave up 15 to 30% of the company in exchange for the new funds.
Now, Knotel hopes to use the new financing to expand in their current markets, while also expanding into new cities.
Although WeWork reached unicorn status years ago, the company’s recent pre-IPO filing revealed that the firm has been losing big sums of money despite growing revenue.