WeWork, the co-working office space provider company continues to expand quickly across the globe and hence the largest investor of the company, Japan's SoftBank has continued to infuse capital. In the latest development, SoftBank has announced a $3 billion fresh financing through SoftBank Corp. The deal will take the valuation of 8 year old WeWork to about $42 billion.
The transaction will allow SoftBank to buy shares in the company before September 2019 at a price of $110 or higher. Notably, apart from infusing capital through SoftBank's Vision Fund, the company through SoftBank Corp has pumped another $1 billion in August. Through the Vision Fund, WeWork had raised $4.4 billion last year.
WeWork was started in 2010 by Adam Neumann, and Miguel McKelvey as a platform which will help startups and individual freelancers and entrepreneurs get an office space. WeWork has raised $10.6 billion to date from which almost 80% of the funds have come from SoftBank. The company is currently operating in 24 countries where it has opened their offices in 83 cities.
The firm says that they have 297,000 available desks in across the globe and they plan to increase the number by adding another 100,000 new office desks for rent this quarter. It claimed to have generated $1.25 billion in revenue in the first 9 months of 2018 and expects to touch the $2 billion mark by end of the year.
With new offices coming at multiple locations of different countries, WeWork is well and truly on a roll right now and continuous capital infusion confirms that the backers do have trust in the firm.
Image Courtesy : wework