KUALA LUMPUR, Malaysia, Sept. 24, 2020 /PRNewswire/ -- Malaysia-based coworking space firm WORQ has secured RM10 million in funding from seven follow-on investors, including the regional investment group Phillip Capital, to help capture a fast-growing Flexi-Office market projected to surpass RM3 billion in value in 2030.
WORQ, which has also secured loan offers from six banks will use the funds to grow its space under management 10-fold to one million square feet, helping businesses pivot to a more cost-efficient solution.
A WORQ-able formula for the coworking industry
WORQ has been profitable since inception in March 2017 with three months being the average time it takes 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%.
Third-time follow-on investor and co-founder of the successfully-acquired startup JobsCentral, Huang Shao-Ning says: "WORQ has definitely found the elusive secret sauce for the Space-On-Demand market. Its fast growth model, coupled with a low-risk profile, is one of the healthiest and rewarding models out there."
With its sustainable model, WORQ is able to help turnaround loss-making spaces even in quiet locations. WORQ has made an acquisition of 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.
Gearing up for faster Space-On-Demand adoption
According to global real estate giant Jones Lang LaSalle, flexible space demand will accelerate due to COVID-19, predicting that 30% of all office space will be consumed flexibly by 2030. WORQ estimates that the flexible office market in Malaysia will grow to RM3 billion by then.
"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 efficiency of space usage," says Ping.
WORQ has won international MNC accounts including some 500-strong teams for multinationals including one of the world's largest advertising firms headquartered in London.
"Fundraising amid the pandemic is a strenuous challenge. MDEC is exceptionally proud of WORQ as one of the seven certified Malaysia Digital Hubs. WORQ has proved its mettle as a formidable startup and community builder through their collaborative programmes. MDEC will continue to render full support towards WORQ's involvement in fortifying Malaysia's startup ecosystem," said Gopi Ganesalingam, VP of MDEC's Global Growth Acceleration Division.
WORQ is a 5-time award-winning coworking space provider that operates in 4 buildings across the Klang Valley/Kuala Lumpur and Selangor. Founded in 2017, the company offers flexible working space options and facilities that cater for the needs of solo entrepreneurs, startups, small-medium enterprises, multi-national corporations and everything in between.