Ucommune Completes D Round Financing Securing $200 Million in Funding

Three months after announcing the completion of its last round of financing, Ucommune just released news that it smoothly completed its most recent D round of financing. Ucommune is recognized as one of the top shared office space service providers and a “unicorn” in China. Today Ucommune publicly announced that the funds raised during this D round of financing set a record for the company with a total investment amount of USD 200 million. This marks the completion of another large-scale transaction within the shared office space industry.

This D round of financing was completed with All-Star Investment Fund as the leading investor and CEC Capital as the following investor. CEC Capital served as the sole financial adviser to Ucommune during this round of financing.

Ucommune also just released data indicating that the company has over 100 thousand desks. Given that the average worker works 8 hours per day, Ucommune’s clients could spend an average of 800 thousand hours per day in the shared office spaces. That amounts to almost 300 million hours per year! By integrating brick-and-mortar locations with optimized online services, Ucommune will generate value for more than just clients looking to rent office space. The company’s revenues are estimated to increase by 200% year-on-year in 2018. 

Since its founding, Ucommune has been committed to the creation and improvement of shared office space environments and intelligent office technology platforms. Ucommune has quickly become a leader in China’s shared office space industry. Currently, Ucommune has more than 200 shared office locations in 37 cities around the world. The combined area of all Ucommune’s locations is 730 thousand square meters. Fifteen thousand different medium-sized enterprises and start-ups rent office space from Ucommune.

Taking advantage of its top-notch operations, management, and product design capabilities, Ucommune has focused primarily on developing smart (IoT) office technologies and big data analytics solutions, while consolidating a once fragmented shared office space industry so as to empower its hundreds of thousands of members worldwide. Within Ucommune’s innovative shared office space ecosystem, diverse groups of individuals—some members, some self-employed, and some working for enterprises—meet, interact, and network. These interactions fuel technological innovation and new forms of economic growth. By providing clients with optimized services and resources, including work environments that foster the exchange and sharing of knowledge and ideas, Ucommune has seen a significant increase in user retention rates. Ucommune has also established connections with corporate clients while developing a variety of value-added services.

Ucommune has combined its capabilities for intelligent office technology creation and office space management to optimize its shared office spaces. The company has established a full-feature service system with offerings that include comprehensive management and customization services and SaaS solutions.

Ucommune is the shared office company of choice for many Fortune 500 companies and “unicorns”, including Keep, Luogic Talkshow, igetget.com, China Zhongwang, Jinri Toutiao, TikTok, Bilibili, Kuaishou, Amazon China, Horizon Robots, OYO Rooms, Sansui, and Wellcom Forefront Culture Media Group. These companies have chosen to station their employees at Ucommune’s locations, and their employees are essential to the Ucommune community and work environments.

 When asked about this investment opportunity, some investors participating in this D round of financing explained that Ucommune possesses market advantages and operational capabilities that are unparalleled in China. Furthermore, Ucommune is poised to create unique shared office space environments, intelligent office technologies, and platform technologies that can be marketed to cooperation partners. The investors explained that these are just a few of the assets that make this such an attractive investment opportunity.

After completing this round of financing, Ucommune will be able to accelerate its expansion plan, strengthen its R&D capabilities, continue optimizing its shared office space environments, and continue upgrading the intelligent (IoT) office technologies. By the end of 2021, Ucommune is expected to have 350 shared office locations in 40 cities around the world. The combined area of all Ucommune’s locations will be 1.3 million square meters and the total number of workstations offered will reach 200 thousand. Ucommune will continue to expand its value-added service offerings for current and future clients so as to position itself as an information exchange platform that catalyzes innovation.

 When asked about this round of financing, Mr. Daqing MAO, Founder and Chairman of Ucommune, said that the global shared office space market can support two competing companies. Mr. MAO explained that entrepreneurship is guided by innovation in China. The market capacity in China has been growing rapidly. This means that there is huge potential for the shared office space and intelligent office technology industries in China. The decisions of investors and the recent flows of capital can serve as evidence.

 Regarding investors and the flow of capital, “I am confident that investors see that the people that work at our shared office spaces are brimming with innovative ideas and enterprising spirits. Ucommune has 100 thousand desks and hundreds of thousands of members. As we grow together, we will create a unique environment. Ucommune is a platform for these environments. This growth will generate value for years to come.”

All-Star Investment Fund is focused on investment projects in China’s internet and consumer industries. The fund’s core management team has members from Morgan Stanley and members that have participated in the listing of Chinese tech and internet companies (i.e. Tencent and Alibaba) overseas. All-Star Investment Fund manages nearly USD 2 billion in assets, with holdings in some of China’s top tech companies, including Xiaomi, Didi Chuxing, Sense Time Technology, Tujia, Manbang, and Lufax.

 When asked about their investment in Ucommune, Mr. Weidong JI, Founding Partner of All-Star Investment Fund, explained that All-Star Investment Fund is optimistic about the shared office space market. Mr. JI believes that Ucommune’s leadership team with Mr. MAO as the leader can lead Ucommune to become an industry innovator and leader. All-Star Investment Fund is happy to provide long-term support to Ucommune to help Ucommune to strengthen the foundation of its operations, strengthen its market position, develop its office space environments, and eventually bring its operations overseas.

CEC Capital is a leading investment bank that operates at the forefront of China’s new economy. CEC Capital focuses on the TMT, consumer product, and healthcare sectors. Its headquarters is in Beijing and its branch offices are in Shanghai, Los Angeles, and San Francisco. CEC Capital has received RIA accreditation from the U.S. S.E.C. Founded in 2000, CEC Capital has worked with many well-known companies including Suning, Didi Chuxing, Xiaopeng Motors, Polybona Film Group, and Miss Fresh. In addition to its investment banking business, CEC Capital also manages an RMB fund and a USD fund.

 Mr. Ran WANG, Founder and CEO of CEC Capital, says he hopes that Ucommune will become more than just the WeWork of China as it expands its operations overseas.