KUALA LUMPUR: Coworking space firm WORQ has secured RM10mil in funding from seven follow-on investors, including the regional investment group Phillip Capital.
The Malaysia-based company said in a statement on Wednesday the funding would enable it to expand into the flexi-office market which is projected to exceed RM3bil in value in 2030.
WORQ will use the funds to expand its space under management 10-fold to one million square feet. Its strategy is to help offices and businesses shift to a more cost-efficient workplace solution following the Covid-19 pandemic.
Despite fundraising post-WeWork’s delayed IPO and during a challenging Covid-19 funding environment, WORQ managed to raise funds from seven follow-on investors.
WORQ is founded by Stephanie Ping, former Axis-REIT head of business development and Andrew Yeow, a former fund manager and equities analyst at CIMB Principal.
The company, set up in March 2017, has been profitable. It said that it takes an average three months to fill up their outlets.
In the two years since its last fundraising round, WORQ has grown its footprint by seven-fold and its revenue by 560%.
With its sustainable model, WORQ is able to help turn around loss-making spaces even in quiet locations. WORQ acquired another flexible space into its portfolio for this purpose.
“WORQ is also looking to inorganically expand its portfolio via acquisitions and partnerships with other coworking space operators and landlords,” it said.
Ping said WORQ’s strategy is to offer tailor-made solutions and extreme flexibility to companies. This is comparable to that of ride-hailing services, which offer on-demand rides one at a time. WORQ sells office usage to companies one desk at a time, eliminating the need to rent and fit out an office.
“WORQ’s space-on-demand solutions allow companies to implement a distributed work style. In this new environment, WORQ can sell one desk multiple times over and increase the efficiency of space usage,” she said.