The co-working and flexible-office space market in Asia is heating up. WeWork, NakedHub and URWork are all busy making deals, raising funds, expanding and vying for market presence and market share.
WeWork is expanding rapidly with $500m of funding to be used for Korea and the SE Asian region. It recently acquired Singapore’s Spacemob. WeWork, with over 130,000 members, now has a presence in over 160 locations across 15 countries across the globe.
Other players in the market such as NakedHub are also expanding rapidly. The group’s recent merger with Singapore’s JustGroup creates a 41-centre platform with over 140,000 sqm under management, and with the ability for further expansion across Asia. It has a significant presence in China and new centres in Hong Kong and Vietnam.
URWork – the Beijing-based startup – now has around 100 centres around China with a valuation of around USD 1.3bn, It plans further expansion into Singapore and key overseas markets. It just announced a further raise of around USD 170m to fund this international expansion with funding providing from Beijing Capital Land and Shanghai-based Prosperity Holdings.
Investors from across the region – including developers, VCs and PE funds – are all playing in the space, with each providing funding to the various groups.
Keep watching this sector, as there is sure to be further activity in the form of JVs and acquisitions.