US-based working space provider WeWork raised $500m from telecommunications group SoftBank and private equity firm Hony Capital today for a newly formed China-based subsidiary called WeWork China.
WeWork has built a network of co-working spaces across 50 cities worldwide, including offices in Beijing, Hong Kong and Shanghai, and has raised about $2.45bn from investors including SoftBank and Hony Capital, including $760m earlier this month at a $20bn valuation.
SoftBank and Hony will each hold minority stakes in WeWork China, but WeWork will retain a majority share and will continue to manage its operations. The funding will be used to strengthen WeWork’s presence in its existing Chinese markets and to enter new cities.
Ronald D. Fisher, Director, vice-chairman of SoftBank, said: “At SoftBank, we are constantly looking to invest in disruptive technologies that will prepare us for the next stage of the information revolution.
“WeWork is leveraging the latest technologies in its transformative and innovative approach to work styles, which fits squarely with that vision. We are excited to continue to support WeWork on its growth and expansion throughout Asia.”
Adam Neumann, chief executive of WeWork, said: “Since coming to China only a year ago, we have been able to establish a vibrant community of creators and companies – and we have only just begun.
“With Hony Capital and SoftBank’s financial support and deep expertise in the region, we will substantially grow our membership base in China and make WeWork the preeminent workspace solution and community in greater China.”
Hony Capital, which is backed by conglomerate Legend Holdings, co-led WeWork’s $690m series F round in October 2016 with Legend itself. SoftBank invested $300m in the company in March this year at a $17bn valuation, and could add up to $2.7bn more from its Vision Fund.
– Photo courtesy of WeWork Cos.