China’s co-working giant Ucommune acquires Wedo in third M&A deal this year

Photo: Ucommune website

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.

Also Read:

China’s co-working major Ucommune said to seek $200m in financing

Indonesia: VC-backed Rework merges with local rival GoWork

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.