On July 27, the Chinese subsidiary of the world’s largest co-working space operator, Wework China, announced that it has completed Series B financing of $500 million. Lead investors include TrustBridge Partners, Temasek Holdings, SoftBank Group Corp. and its Vision Fund as well as Hony Capital.
This is not the first time Softbank has invested in WeWork. In the Series A round of $500 million on July 27, 2017, SoftBank and Hony Capital were also lead investors. According to Forbes, SoftBank made a total investment of $4.4 billion in the company in August 2017. This include a $3 billion investment into WeWork directly, via primary and secondary shares, and $1.4 billion into the three subsidiaries of WeWork China, WeWork Japan and WeWork Pacific.
“WeWork is reshaping office space. With our continuous capital support, we believe WeWork will continue to lead the future trend for co-working.” said John Zhao, Chairman of Hony Capital.
Founded in 2010 in New York, WeWork currently has 424 co-working offices in 80 cities and 25 countries. On April 12, the company managed to purchase the Chinese co-working space startup NakedHub for 2.5 billion yuan ($400 million), marking its leading position in the co-working industry.
At the moment, co-working spaces are sweeping over China and the mergers and acquisitions in the industry is getting ever fiercer. With the rise of domestic companies such as KrSpace and UrWork, services and operation models are the key factors to success and survival.