MALAYSIA-BASED co-working space provider WORQ has nabbed RM10 million (S$3.3 million) in funding from seven follow-on investors, including regional investment group PhillipCapital.
The funding will be used to help the company capture the fast-growing Malaysia flexible-office market, which it estimates will grow to RM3 billion by 2030, it said in a press statement on Thursday.
WORQ has also obtained loan offers from six banks. The firm will use the funds to grow its space under management to one million square feet, it said.
The company is looking to inorganically expand its portfolio via acquisitions and partnerships with other co-working space operators and landlords. The co-working space provider operates in four buildings across the Klang Valley/Kuala Lumpur and Selangor.
Stephanie Ping, WORQ chief executive and co-founder, said the startup sells office usage to companies one desk at a time, eliminating the need to rent and fit out an office.
"In this new environment, WORQ can sell one desk multiple times over and increase efficiency of space usage," she said.
WORQ said it has been profitable since its inception in March 2017 with three months being the average time it takes to fill up its outlets.
Third-time follow-on investor Huang Shao-Ning, the co-founder of startup JobsCentral, said WORQ's fast-growth model, coupled with a low-risk profile, is "one of the healthiest and rewarding models out there".
Gopi Ganesalingam, vice-president of Malaysia Digital Economy Corporation's (MDEC) global growth acceleration division, said MDEC will continue to render full support towards WORQ's involvement in fortifying Malaysia's startup ecosystem.
WORQ is one of the seven certified Malaysia Digital Hubs, which provide ecosystem components, including high-speed broadband and various soft infrastructure offerings.