Sequoia Capital-backed UrWork, a China-based co-working space startup, has received RMB400 million ($58 million) from Tianhong Asset Management Co. Ltd, a mutual fund unit under Alibaba’s financial services firm Ant Financial, and Junfa Group, a Chinese property developer.
Other investors include Chinese property firm Dahong Group and Tianming Shuangchuang Technology, both based in Henan province, as well as Shanghai Chuanghehui Fund, according to a report in China Money Network.
Founded in March 2015 by Mao Daqing, ex-Senior VP of Wanke Enterprise, UrWork provides co-working space to individuals and small companies. Since its inception, the company has raised over RMB 1.2 billion ($175 million) in six rounds of funding.
In its last round in June, UrWork, China’s largest co-working space operator in terms of a number of sites, had secured $46 million in a pre-Series B round from Chinese commercial property developer Yintai Land and Zhongrong International Trust Co Ltd. It also counts Sequoia Capital, Gopher Asset Management Co. Ltd, Zhen Fund and Sinovation Ventures among its investors.
Currently providing 16,535 desks in co-working space locations across 10 cities in China, UrWork plans to open in 36 locations more across 16 cities in China with 20,000 desks this year, as per a statement issued by the company in June 2016.
The number of co-working spaces in China has grown rapidly in 2016 with over 500 sites in Shanghai and Beijing alone compared to just a few in 2015, according to real estate services firm Jones Lang LaSalle. The real estate developers are targeting the space and renting out their property even as investment funds are also helping out with capital.
Last November, naked Hub, the Shanghai-based network of co-working spaces, had raised funding from Gaw Capital Partners. Another rival in the same space WeWork had received $260 million funding from Shanghai Jin Jiang International Hotels and others.