American shared workspace provider WeWork’s Chinese unit secured a $200 million investment led by Trustbridge Partners, leaving WeWork with a minority stake in its Chinese branch while making Trustbridge Partners the controlling shareholder.
Previously in 2018, the Shanghai-based equity company Trusbridge Partners backed WeWork China in its Series B round of financing. After this round of investment, WeWork China assigned Micheal Jiang as the acting chief executive, who is an operating partner at Trustbridge Partners and was previously a senior vice president at Meituan.
Based in New York, the co-working giant first tapped into the Chinese market in 2016 with its brand attitude and chic store design, right at the point when co-working culture was beginning to thrive in China. Since then, over 100 WeWork spaces opened in 12 cities across the country, claiming approximately 65,000 members as of today.
In 2019, WeWork suffered a listing disaster, failing to go public while its capital valuation plummeted by 90%. The major setback negatively impacted SoftBank Group Corp. and Masayoshi Son, its two investors.
The company later contracted its business worldwide. As the Covid-19 pandemic struck the world and domestic competitors like Naked Hub attempted to take over market share, the economy saw a worsened surviving scenario for WeWork’s Chinese unit. China now takes up around one-eighth of its total stores down from the former share of one-sixth in 2018.
WeWork China declined to comment on the investment and personnel change.