Chinese co-working start-up naked Hub, a private equity-backed unit under Chinese resort brand naked, has agreed to merge with Singapore-based peer JustCo. The merger aims to create the largest premium co-working operator in Asia to better compete against WeWork, the world’s biggest co-working company, boasting a US$20 billion valuation.
In addition, naked Hub revealed that it is in the process of closing a US$200 million series C round as soon as next month, according to a company announcement.
JustGo is the largest co-working space operator in Singapore with additional co-working locations planned in Bangkok, Kuala Lumpur and Jakarta. The combined company will have 140,000 square meters under management with 41 co-working locations in nine cities across six countries, serving over 8,000 companies and expected to attract 32,000 members.
“This deal will bring together two regional powerhouses in the Asian co-working scene allowing us to break the US$100 million revenue before the end of this year,” said Grant Horsfield, founder of naked Group. “naked Hub, with its hospitality background, proprietary and innovative technology and award-winning design, perfectly complements JustCo’s footprint in Singapore and its Southeast Asia know-how.”
The global co-working industry is booming, growing 71% annually from 2007 to 2015, and is projected to grow 68% annually from 2016 to 2018, according to data from Statista.
“A merger with naked Hub is timely and makes perfect sense, with JustCo spearheading further expansion in Southeast Asia and naked Hub taking care of North Asia, we will become the preeminent pan-Asian player in this space,” said Kong Wan Sing, founder and CEO of JustCo.
The deal comes one day after WeWork announced that it would partner with Softbank to launch operations in Japan. The company currently operates 14 co-working locations across North Asia, while naked Hub currently has 21 co-working spaces across China, Hong Kong and Vietnam.
Officially founded in 2007, naked Hub opened its first co-working space in 2015 in Shanghai. It previously raised a US$33 million series B round led by Hong Kong’s Gaw Capital last November.
Source: China Money Network
