WeWork Chinese rival hits $3b valuation after new $200m round

Photo credit: Ucommune

Ucommune, a WeWork competitor in China, today announced the close of its US$200 million series D round, which brought its valuation to US$3 billion.

The round marks the single largest in China’s co-working space industry, the firm claimed.

The money will be spent to grow its global footprint, strengthen its research and development, and upgrade its “smart office” technology.

To date, Ucommune has more than 200 facilities in 37 cities around the world, catering to nearly 15,000 large and medium-sized enterprises as well as startups.

It aims to aggressively expand over the next three years to span a total of 350 cities in 40 countries. In China, one way the company is extending its reach is by acquisitions – the latest is Fountown, based in Beijing and Shanghai.

As the market heats up, Ucommune is racing against several other firms to become China’s leading provider of shared offices. Its strongest rival, US-based WeWork, is reportedly valued at US$20 billion. Used to be known as UrWork, Ucommune was forced to change its name after a lawsuit filed by the US unicorn.

Ucommune founder and chairman Mao Daqing said in an earlier interview that he would consider an IPO for the firm in the next couple of years, possibly in Hong Kong. He wants the company to be independent so an IPO is certainly an option, but he is “not against the idea of being acquired.”

The series D round was led by All-Stars Investment, and joined in by CEC Capital.