UrWork (Beijing) Venture Investment, which operates under the brand name ucommune, has announced the acquisition of rival and co-working space provider Woo Space in China.
Post-merger, the combined entity will focus on platform upgrading, integrating the membership system, enhancing exchanges and co-operation between the two companies in location and corporate service resources.
As per a press statement, total number of members are estimated to reach over 200,000 post the merger.
The announcement comes two months after ucommune’s acquisition of New Space.
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Commenting on the Woo Space deal, ucommune Founder and CEO Dr. Mao Daqing said. “The merger draws on the cultural and technical strengths of both companies – community spirit, commercial development, and ecological development. All our members will be integrated to our ucommune platform to enable more efficient and effective operations and better community synergy,”
“Woo Space is a team that I have admired and followed closely. The 1990s-born CEO has deep insights into the needs of young people in the co-working space and keen on developing the potential of youths. The team’s astute ability to identify good location and their knowledge of cross-border relationships within the E-commerce industry have inspired ucommune,” added Mao.
Wan Liushuo, Founder and CEO of Woo Space, said: “ucommune has a wealth of cross-regional, large-scale operational and management experience, as well as diversified financial operation capability. Both parties will be fully committed to synergising resources, management capabilities to maximise our market share and commercial performance in membership operations and brand building.”
Established in 2015, Woo Space has operations in 23 locations across China, covering a total area of 100,000 square meters, servicing 700-plus enterprises. It counts Matrix China, Xinli Capital Group, Meihua Angel Investment and Qingshan Capital as its investors.
In early 2016, ucommune participated in the A-round financing of Woo Space through strategic equity investment.
Founded in April 2015, ucommune provides startups, SMEs and corporate tenants with on-demand, short-term leasing and customised space solutions. With 100 locations in over 30 cities in the world, ucommune aggregates over 1,000 professional business service suppliers across a broad spectrum. It claims to be serving over 40,000 individual members and over 3,000 enterprises.
Last December, ucommune (earlier known as UrWork) raised US$45 million in Series C round of funding led by Qianhai Wutong Mergers and Acquisitions Funds, a PE fund owned by regional equity exchange Qianhai Equity Exchange.
In recent years, the co-working space sector has been growing at year-to-year rate of 30 per cent. It is estimated that by 2019, the total operating area of co-working space in China will reach 51 million square meters. By 2030, 30 per cent of office space will exist in the form of co-working spaces.
In the next five years, the development of a platform and sharing economy will become an important part of promoting the growth of new economy.