Chinese co-working space operator Ucommune, formerly known as UrWork, on Wednesday announced the acquisition of yet another player in the co-working space, Shenzhen-based Wedo, to further strengthen its leadership position in the segment.
The acquisition marks Ucommune’s third M&A deal this year. Earlier this month, it completed the acquisition of Woo Space, while it bought Hongtai New Space in January. Ucommune, the unicorn startup, had also participated in the Series A funding round of Woo Space through a strategic equity investment.
The acquisition of Wedo, founded in May 2015, adds 12 co-working spaces with 60,000 square metres of total area to Ucommune’s portfolio and 300 enterprises to its network of members. Wedo comprises co-working, Wedo-Hoffice, Wedo-Moffice, Wedo-Lab, its ESC enterprise service centre and a global fintech technology laboratory in Shenzhen, which claims to have incubated over 10 enterprises.
In recent years, co-working space sector has been growing at a year-on-year rate of 30 per cent. It is estimated that by 2019, the total operating area of co-working spaces in China will reach 51 million sqm. By 2030, nearly 30 per cent of office space will exist in the form of co-working spaces, the company had said, in an earlier statement.
Founded in 2015 by real-estate veteran Dr Mao Daqing, Ucommune offers long-term leasing, hot desk and corporate-customization solutions and professional services across a broad spectrum for small-to-medium enterprises. The company claims to have grown to cover over 120 locations in over 35 cities globally, servicing over 5,000 enterprises and 120,000 individual members in total.
Backed by investors such as Sequoia Capital, ZhenFund, Noah Wealth Management, and Sinovation Ventures, Ucommune reached $1.7 billion valuation after its C round and acquisition of Woo Space. Chinese internet retailer Alibaba Group Holding Ltd, through one of its units, is also an investor in Ucommune.
According to a Reuters report on Thursday, Ucommune is seeking to raise $200 million in financing to expand its global operations. The company officially opened its first location in New York City on Wednesday as it seeks a bigger U.S. presence. The company already has sites in San Francisco and Los Angeles.
The company reportedly raised an additional RMB110 million ($17.4 million) in strategic investment from existing investor Qianhai Wutong Mergers and Acquisition Funds in February this year. In December, it raised RMB300 million in a Series C funding round, also led by the same M&A fund, which is backed by Qianhai Equity Exchange.