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Yeow (left) and Ping at the press conference highlighting WORQ’s expansion plans. (Photo by WORQ)
KUALA LUMPUR (23 September): Malaysia-based space coworking operator WORQ has raised RM10 million in funding from seven follow-up investors, including Singapore-based independent fund management company Phillip Capital Management. This will help WORQ expand into what is estimated to be the RM3 billion flexible office market by 2030.
WORQ also guaranteed loan offers from six banks: Affin Bank, Maybank, CIMB, Alliance, UOB and Ambank. It will use the funds to increase its coworking spaces from 10 times to one million square feet and provide offices and businesses with a more profitable workplace solution after the Covid-19 pandemic.
“WORQ aims to offer tailored solutions and extreme flexibility to companies. This is comparable to ride-sharing services, which offer rides on demand one at a time, ”said WORQ co-founder and CEO Stephanie Ping at a press conference today.
“By selling office use to businesses one desk at a time, you eliminate the need to rent and equip an office. WORQ’s space-on-demand solutions will enable companies to implement a distributed work style, as well as being able to sell a desk multiple times and increase the efficiency of space use. “
According to WORQ, JLL Research claims that flexible office spaces only account for 1% of the total office space in Kuala Lumpur. The demand for flexible space is expected to accelerate due to the pandemic and 30% of all office space will be consumed flexibly by 2030.
Since its inception in March 2017, WORQ has been profitable. It takes an average of three months to fill their coworking spaces, which have increased their footprint seven times and their revenue by 560%.
With its sustainable model, WORQ can reverse wasteful spaces even in quiet places. The operator has made an acquisition of another flex space in its portfolio for this purpose. It is also looking to inorganically expand its portfolio through acquisitions and partnerships with other coworking space owners and operators.
WORQ has expanded its services to include WORQ Enterprise, an on-demand space division dedicated to consulting and customizing workspaces for companies. These integrated solutions will help businesses save up to 30% in monthly costs.
WORQ also helps facilitate collaboration by introducing a community working style. “A community work style is powerful because you will find great value in accessing the community when you need help or someone to collaborate with,” said Ping.
According to WORQ Co-Founder and CFO Andrew Yeow, people are getting used to an economy based on on-demand subscriptions and will prefer to consume things on the go without having to invest or commit to a space.
“Today, having flexibility and not having to commit too much capital up front makes a big difference and this can also be seen in larger multinational companies. They will come to us as service providers to help them meet the requirement they need for about a year. In a way, this concept has now become mainstream, ”he said.
WORQ will soon release its proprietary application, SPARQ, to create an online and offline experience for its users. “This will generate local communities everywhere, thus probing the world with hyperlocated productive communities around the world. Ultimately, WORQ’s vision is to help people prosper by working together, ”said Ping.
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