Chinese co-working giant battles with US rival to dominate Southeast Asian market
The co-working unicorn will compete with US giant WeWork in the region through its investment in Indonesian start-up ReWork
UrWork, a major shared work space provider in China, has taken its rivalry with US giant WeWork into Southeast Asia by financially backing an Indonesian start-up.
Beijing-based UrWork took part in an early round of funding that raised US$3 million for ReWork, which will use the cash to bankroll its expansion from Jakarta to the island of Bali. The fundraising was led by ATM Capital and Indonesia’s Convergence Ventures.
With 88 locations in 25 Chinese cities, UrWork is one of China biggest players in the co-working field. A recent round of financing valued the company at US$1.5 billion. It is a direct rival of the American giant, WeWork, which recently made its own foray into Southeast Asia.
“As Chinese co-working companies look overseas and move to cater to medium-to-high end tenants, such changes will inevitably pose challenges to WeWork,” said Yu Kexin, an analyst iResearch.
As it launches eight new locations at home, UrWork aims to move into 32 cities worldwide, setting up 160 shared workspaces over the next three years, according to a statement posted on the company’s website.
The decision came around the same time that WeWork announced its plan to acquire Singapore-based SpaceMob as part of a US$500 million investment in Southeast Asia and South Korea.