WeWork Raises Funds at $16 Billion Valuation for Asia Expansion
WeWork Cos., a New York-based shared-office startup, raised $430 million from Chinese investors as it prepares to expand throughout Asia. Investors valued the company at $16 billion as part of the financing round, according to a person familiar with the matter, who asked not to be identified because the terms were private.
Chinese investment firms Legend Holdings and Hony Capital led the round, WeWork said. The real estate startup's website lists China, Hong Kong, India, and Seoul among the places where it will offer service "soon." John Zhao, the chief executive officer at Hony Capital, said in a statement that WeWork's "fit for the Chinese culture is unparalleled."
WeWork has about 50,000 members globally, who rent desks and offices in shared spaces operated by the company in 21 cities. Memberships start at $45 a month, and the company is also exploring residential rentals. WeWork is in talks with an Australian developer about forming a global venture to lease offices and living spaces to other companies, Bloomberg reported last week.
Corporate documents filed Tuesday night in Delaware show that WeWork has authorized the sale of as much as $780 million in shares as part of the round. Fortune and the Wall Street Journal reported details of the sale earlier. WeWork's last financing round, disclosed in June, valued it at $10 billion.
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