Asia Biz News - Asian Business News and Tenders
China's Latest Breakout Startup UrWork Landed Another Major Investor
July 12, 2017
One of the hottest startup business categories in China is co-working space suppliers. The largest of those, UrWork, just announced it had landed another major investor, Beijing Love & Health Group (also known as Beijing Aikang Group), a major Chinese conglomerate with investments in health and hospitality providers.
The announcement of Beijing Love & Health Group's strategic investment, equivalent of US$ 29.4 million, was made on July 5, seeing the two Beijing-headquartered companies to co-develop a novel co-working model, set to launch in the first half of 2018. The announcement came two months after the announcement of the US$ 58.8 million fund injection from Star Group, China's leading supplier of table tennis equipment and incubator for professional snooker pool players.
Dr. Wang Dong, founder and Chairman of Beijing Love & Health Group spoke highly of the investment: "Dr. Mao Daqing has demonstrated phenomenal audacity and leadership through driving UrWork from complete scratch to the Unicorn status as it is today over a short course of two years. We see this as an opportunity to extend our portfolio in real estate developments and I am confident that the strategic investment built on our shared values and complementary strengths will see UrWork going from strength to strength."
Wang adds that UrWork's strategic alliance with governments, the growth prospect of co-working industry, palpable commercial growth potential and strong management team are core factors that influenced the deal. He believes that UrWork sets the industrial standard and is happy to invest in a standard around which the whole industry can coalesce.
Beijing Love & Health Group, founded in 1993, is a leading Chinese conglomerate with diversified investment portfolio in pharmaceutical and medical, securities and funds, hospitality and catering, as well as real estate sectors. With a clear health-oriented investment strategy, the company champions medical system upgrading and provides excellent post-investment support.
"This new fund injection will help further strengthen our core verticals and diversify our investor portfolio. Beijing Love & Health Group's investment is the forerunner of a series of facility and service upgrading at UrWork and we will continue to complement our existing platform facilities and resources with targeted health hospitality real estate, and contingent resources in shared working space sector," said Dr. Mao Daqing, founder and CEO of UrWork.
UrWork's current investor portfolio counts the big names of the industry such as Zhen Fund, Sequoia Capital, Gopher Asset, Noah Wealth Management and Sinovation Ventures. The company is valued at US $1.3 billion after its merger with its biggest rival in China New Space in February. It counts Unicorns such as ofo, Mobike, BlueGogo, Bilibili, Today's Headline, as well as large global enterprises such as Amazon China, JD.com as its roaster tenants.
UrWork (Beijing) Venture Investment Co., Ltd, known as UrWork, is a co-working disrupter and leader in China, providing start-ups, SMEs and corporate tenants with on-demand, short-term leasing and customised space solutions at an exceptional value. The company has last month opened its first overseas location at JTC launchpad in Singapore in tripartite partnership with Singapore International Enterprise and CapitaLand, and sets to open another 150 locations across 32 cities worldwide including Los Angeles, New York and London over the next three years, enabling community connection for 40,000 individual members and over 5000 enterprises.
While actively building economy of scale through soliciting investments, UrWork advocates consumption-upgrading in line with the central government's national economic development scheme. Offering integrated multi-functional services and modern office facilities, UrWork platform aggregates over 1000 partner enterprise and third-party service suppliers, encompassing financial advisory, human resources, media, consultancy, international shared-medical-service platform, online sport travel commerce, intellectual property protection, intelligent hardware, start-up accelerator and interior design.
The global sharing economy in 2014 was reported to reach US$ 1.5 billion and US$ 8.1 billion by 2015. The total market capitalisation of share economy is estimated to reach US$ 335 billion, with 36% year-to-year growth rate. Assessing from the current growth trajectory, China's sharing economy volume will crown the world within the next three to five years.
"The rising concept of co-working address the more mobile working style modern urban professionals have today, where an increasing number of people work on the go, resulting in an under-utilisation of working space. By making space more dynamic with well-crafted furniture and facilities, and supportive services, this recaptures the latent under-utilised space, which also helps drive greater cost efficiencies," said Mao, a former real estate executive with 23 years of experiences in the commercial and residential real estate under his belt. "We are looking to diversify our portfolio and strengthen our brand asset in a bid to create a more comprehensive and inclusive 'UrWork' experience integrating all contexts in work and life."
Cautionary Statement Regarding Forward-Looking Statements:
This press release contains forward-looking statements. All statements contained here that are not clearly historical in nature or that necessarily depend on future events are forward-looking, and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. These statements are based on current expectations of UrWork company and currently available information. They are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict, and are based upon assumptions as to future events that may not prove to be accurate or may be under the control of unrelated third parties. UrWork does not assume any obligation to update any forward-looking statements contained in this press release.
Visit http://www.urwork.cn to access more information about the facility, accelerator and mentor program from the company.
Founded in 2015 by real-estate veteran Dr. Mao Daqing, UrWork (Beijing) Venture Investment Co., Ltd is a leading co-working space provider in China offering long-term leasing, hot desk and corporate-customization solutions and professional services across a broad spectrum for small-to-medium enterprises. Backed by renowned investors such as Sequoia Capital, Zhen Fund, Noah Wealth Management, Sinovation Ventures, UrWork posts a valuation of US$ 1.3 billion after B-round as of June 2017, and has grown to cover over 78 locations in over 20 cities in China, Singapore and New York, servicing over 3000 enterprises, 40,000 members in total. UrWorks expands globally through partnership with accredited facility operators and franchisers and UrWork is the largest and most recognised co-working space brand in China. (www.urwork.cn)
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