Malaysian co-working space Worq secures pre-series B funds, says it’s profitable (Update)

Photo credit: Worq

Worq, which provides co-working and flexible spaces in Malaysia, has completed its pre-series B round supported by 14 follow-on investors.

The round was led by Phillip Capital Management, a global asset management firm that invested in Worq for the third time. Mah Sing Group, a major property developer in Malaysia, joined the fundraise.

Worq will use the new capital will to grow its space under management and increase its network of locations across Malaysia.

Additionally, Worq said it aims to raise roughly US$8.5 million in series B money in the future – separate from the amount it secured in the pre-series B round.

Funding details

• Funding amount: Undisclosed
• Lead investors: Phillip Capital Management
• Other investors: Mah Sing Group
• Stage: Bridge
• Source

Founded in 2015, Worq has nine locations across Malaysia. It offers several plans ranging from hot desks, private offices, event spaces, to day passes.

Worq said it is currently on track to double its space under management by the end of 2023, while aiming for 3,000,000 square feet by 2030.

So far in 2023, Worq’s revenue has grown 80% year over year. The company added that it is profitable, with net profit margins in the “mid-teens.”

The startup also mentioned an increasing demand for flexible office spaces from corporate clients. This segment now makes up 70% of Worq’s demand – compared to only 20% before the pandemic – and has led the startup to partner with landlords and real estate investment trusts.

See also: Co-working spaces see a surge in demand – but it may not last

Update (November 5, 12:00 pm): This article was updated to include additional information on Worq’s series B fundraising plans.

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