China:Prometheus Capital & IDG lead $30m investment in KR Space

coffee in a coworking space.

Prometheus Capital and IDG Capital Partners have invested a combined RMB200 million ($30 million) in KR Space, a co-working space spinoff from technology media and entrepreneur services company 36Kr.

Ant Financial-backed 36Kr separated the Kr Space unit into an independent entity in January, and raised an undisclosed series A round from Gobi Partners, early-stage angel investment fund Unity Ventures and others.

Prometheus Capital, founded by Wang Sicong, the son of China’s richest man Dalian Wanda Group’s Wang Jianlin, will help KR Space secure more property and space for expansion. Speaking on the investment, Wang said, “As young people become a larger portion of the working population, new types of work environment will take a bigger share of the office property market.”

Currently, KR Space operates 28 co-working space across ten cities in China, with plans for establishing 60 more sites in 2017. It aims to have 1000 sites in 100 cities within five years. Its sites are concentrated in Beijing, Shanghai and Hangzhou, reporting a total seating capacity of 13,000.

In addition, it provides legal and accounting, logistics, marketing and cloud computing services and reports inucbating 101 startups ventures in the last two years, many of whom have gone on to raise subsequent funding rounds. The latest round of funding will finance the opening of 60 more sites, with an estimated 30 spaces to be opened in Beijing.

This development comes as Hong Kong-based private real estate investment firm Gaw Capital Partners made an undisclosed investment in Shanghai-based co-working space network naked Hub.

In March 2016, Legend Holdings and Hony Capital led a $430 million Series F round for US-based co-working space provider WeWork, which is looking to expand into Asian markets, and another comparable pre-Series B investment of RMB300 million ($44.4 million) for UrWork, which its its raising of RMB200 million in an extended Series A round.

Beijing and Shanghai are seeing over 500 co-working spaces being set up within the last 18 months and more co-working spaces currently in the pipeline.

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