China-based co-working space supplier Ucommune has raised $43.5m in a series D round led by industrial and real estate conglomerate Prosperity Holdings that valued it at $1.8bn.
RK Properties, a real estate subsidiary of property and infrastructure developer Road King Infrastructure, co-led the round with Prosperity according to several media sources, although a Ucommune press release confirmed only that it has become a strategic partner.
Formerly known as URWork, Ucommune runs a collection of co-working spaces across 160 locations in 35 cities, most of which are in or near China, supplying desks and full offices alongside professional services.
The series D capital will be used to expand Ucommune’s network and increase the range of services it provides. Ucommune intends to close the round at about $200m and is considering an initial public offering in Hong Kong in 2019, founder and chairman Mao Daqing told Bloomberg.
Daqing said in an official statement: “The concept of co-working has evolved tremendously over the last two years to one that compasses traditional rental, bespoke design, community networking and new retail.
“Ucommune has evolved from a single space provider to an integrated value-added experience where people from all backgrounds and walks of life can convene, connect and innovate together.
“Through this partnership with RK Properties and Prosperity Holdings, we seek to further upgrade our integrated coworking experience through tapping into the community synergy and the potential of commercial contexts.”
The company has now raised approximately $515m since it was founded in 2015, securing early funding from Gopher Asset Management, CIC Hanfor, Sequoia Capital and ZhenFund before raising $46m from property developer Yintai Land and Zhongrong International Trust in 2016.
Real estate developers Junfa Group and Dahong Group joined Tianhong Asset Management, an affiliate of financial services provider Ant Financial, as well as Tianming Shuangchuang Technology and Shanghai Chuanghehui Fund for a $58.4m round in January 2017.
Conglomerate Beijing Xingpai Group invested about $58m in Ucommune in May 2017. The company received $178m in a pre-series C round in September co-led by Prosperity Holdings, conglomerate Aikang Group, property developer Beijing Land Capital and media company Star Group.
UCommune then raised $46.5m from Qianhai Wutong Mergers and Acquisitions Funds, CKing Home-Key Investment Group and Context Lab in December, and a further $17.3m from the former in February this year.