KR Space Ltd aims to seek funds for expansion

KR Space Ltd. Aims To Seek Funds For Expansion

KR Space Ltd. is a renowned provider of co-working spaces. It is currently competing with WeWork Cos, located in China. According to recent reports, it is being revealed that KR Space Ltd. is looking to generate $200 million in funds. It will be conducting a new funding round, according to sources, in order to make sure it has enough to expand its business and compete with its rivals.

Based in Beijing, KR Space Ltd. is currently operating as a start up. Today, it was revealed that the company wants to gather further funds in order to expand. The company wants to attain a post money value of $1.3 billion (US dollars). The information and reports are still new but still being confirmed, which means KR. Space Ltd. is definitely going to seek money to expand its operations.

It is also being revealed that KR. Space Ltd. will be looking to merge with rivals. The overall competition in China’s shared office spaces is also increasing as the industry is going through a consolidation phase. WeWork has previously purchased its rivals in order to further expand its own operations. Back in April, the company bought Naked Hub, which is a smaller local rival. This was a move made to ensure that WeWork’s presence in the country is further strengthened.

KR Space Ltd. started its operations in 2014. It has a long list of investors already including IDG Capital, Prometheus Capital and Gobi Partners. All of these have made heavy investments in the company but now the company wants to take the funding route to make sure that it generates further capital and funds. KR Space Ltd. is an affiliate of renowned 36Kr, which is an online media company located in China. 36Kr is backed by hefty millionaire Jack Ma. This is also something that reflects well on the company as well.

Even though the news has been confirmed by various sources, the company itself hasn’t made any comment on it yet.

As of now, KR Space Ltd. has 40 shared office spaces located in 30,000 sq. meters of floor space. The company is renting desk space and different offices to over 2000 companies and on the other side, 20,000 individual members as well. On the other hand, WeWork, it’s rival, started with its ambitions when it started in 2016 with its office located in Shanghai. It had over 10,000 members and more than 12 offices in China.

WeWork itself has raised more than $4.4 billion from different operators such as SoftBank Group Corp for its Asian subsidiaries and worldwide operations. WeWork’s funding valued about $20 billion.

KR. Space Ltd’s move to expand is a sign that it wants to strengthen its footing amongst rising competition of coworking spaces. As a large number of companies are venturing into coworking spaces, big companies are making sure that their footings are confirmed and strengthened as they compete with one another. KR Space Ltd. currently faces competition from many companies and WeWork is one.

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