Chinese co-working major Ucommune raises $200m, valuation jumps to $3b

Ucommune

China’s co-working space provider Ucommune has raised $200 million in a Series D round of funding led by Hong Kong-based All-Stars Investment, it announced on Tuesday.

The company’s valuation after the financing has soared to $3 billion, it added. Ucommune had raised $44 million in its pre-Series D in August this year, earning a post-money valuation of $1.8 billion.

Proceeds from the latest funding round, which was joined by CEC Capital, will be used to expand its global presence, and strengthen its research and development capabilities.

Ucommune currently claims to cover over 200 locations in over 37 cities globally, including Singapore, New York, Beijing, Taipei, Hong Kong and Shanghai. It now plans to expand to 350 cities in 40 countries around the world over the next three years.

Ucommune, which is China’s first co-working unicorn and Asia’s largest co-working space provider, has been on an acquisition spree this year. It has snapped up co-working space providers Fountown, Woo Space, Wedo Space, Workingdom (for $45 million) and New Space as well as architectural design firm DAGA.

In September, it was said to have acquired smart office platform Huojian Technologies for RMB 200 million ($28.7 million). It announced an investment of RMB 150 million ($21.5 million) in digital marketing firm GIMC Zest Digital in November.

In a recent interview with this portal, Ucommune founder Mao Daqing had said that the completion of the Series D round will pave the way for an IPO early next year.

Ucommune is fighting off formidable competition on its home turf. WeWork China raised $1 billion in debt in August from backer SoftBank after closing a $500-million Series B round in July. Another co-working space operator in China, MyDreamPlus, had raised $120 million in a Hillhouse Capital-led round.

“We are the largest in China, but they (WeWork) are the largest in the world,” Mao had said. “We welcome competition. Having international players like WeWork will lift market standards and help everyone.”

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