KUALA LUMPUR (Oct 11): Malaysian coworking and flexible space provider WORQ is targeting to achieve a total RM40 million in its fourth fundraising round and announced that it has completed its latest round pre-Series B fundraising backed by 14 follow-on investors including global asset management firm PhillipCapital — its third consecutive investment into WORQ and its largest placement to date — and the Leong family of Mah Sing Group Bhd.

In a press release dated Oct 10, WORQ said the funding raised will be fully utilised for space expansion and that WORQ is currently on track to double its space under management by end-2023 and aims to triple that space to 450,000 sq ft by 2025.

It added that WORQ has plans to further expand its space under management to a sizeable three million sq ft by 2030. To date, WORQ has incubated 300 startups and 100 tech companies with plans to enable over 10,000 workers by 2025.

According to WORQ chief executive officer and co-founder Stephanie Ping, WORQ’s Space-As-A-Service model provides clients scalability and flexibility through its network of cloud offices. “We have built a network of one-stop business centres that serve as a vital infrastructure for foreign and local business formation in Malaysia. We see this as a foundational part of the cycle of job creation, upskilling and knowledge transfer. This vibrant business ecosystem will create high-income jobs to secure Malaysia’s long-term sustainable development.”

The statement said WORQ achieved strong revenue growth of 80% while maintaining mid-teen net profit margins in 2023. “Notably the demand for flexible office space continues to accelerate, with WORQ achieving an average of two months to fill its new space expansions. In addition to its traditional coworking clientele, which includes tech startups and small and medium enterprises, WORQ is experiencing increasing demand from global firms expanding into the region.

“Corporate clients now account for 70% of WORQ’s demand compared to only 20% before the pandemic. Recognising this trend, several landlords and REITs are partnering with WORQ to provide these solutions to their buildings.”

Phillip Capital Management Ltd CEO Linus Lim said: “As an investor of WORQ, we have witnessed the rapid growth and the world-class services they provide. WORQ’s adept cost management and efficient growth strategy positions them as a scalable and sustainable business model, capable of competing not just locally but also on a global scale. We value founders who can anticipate industry trends, and WORQ’s team has undeniably demonstrated their strategic foresight, a quality that gives me confidence in their future success.”

Leading the investment for the Leong family, Rachel Leong said: “We are optimistic about the growth in demand for flex spaces and are thrilled to be part of WORQ’s growth journey. With a customer-first approach, prudent financial management and disciplined execution, we have full confidence that WORQ will continue its growth story in the coming years.”