WeWork secures $260M more as it looks to further expand globally
October 13, 2016
Office co-working space provider WeWork has secured $260 million toward its latest financing from investors including Shanghai Jin Jiang International Hotels (HKG: 2006), according to The Wall Street Journal. The round now totals $690 million and is said to value the company at $16.9 billion.
That valuation represents a 60% increase from WeWork’s last financing, a $434 million investment in June 2015 at a $10.2 billion post val. The jump is a bit surprising considering a July report that the company had cut its 2016 profit projections by 78%.
The fresh funds are said to be going toward international expansion, so it appears investors are betting WeWork’s model will succeed abroad. Nineteen of the 32 cities where the company currently operates are in the US, but that's slated to soon change. WeWork opened its first location in China earlier this year and has plans to launch in India soon, two huge markets. That said, expanding into those nations may not be a breeze—one need not look further than Uber’s struggles in China for an example.