US-based coworking space and shared office service provider WeWork has raised $3 billion in funding from Japan-based venture firm SoftBank, according to a report by Reuters. The latest development is in the form of a warrant under which the coworking startup shall receive $1.5 billion on January 15 and the remaining $1.5 billion on April 15 next year.
Earlier in July this year, WeWork raised $500 million from investors like Temasek Holdings and Softbank Group Corp. World’s largest private equity fund SoftBank was in discussions to buy a majority stake in WeWork, according to sources of Reuters.
The New York-based startup leases office spaces and rents them as shared offices and coworking spaces to individuals and startups. WeWork plans to enhance its marketing and boost its membership in China to one million by the end of 2021.
The net losses of WeWork jumped to $723 million in the quarter ending August this year. A year earlier the net losses in the same quarter were $153 million. Softbank and WeWork have close relations as hundreds of SoftBank’s employees use WeWork’s office space. SoftBank Vision fund has investments in some prominent startups including the ride-hailing service Uber.
Softbank has invested $1 billion in WeWork in the form of a convertible note in August this year. SoftBank is far and away WeWork’s biggest investor, with SoftBank Vision Fund having poured $4.4 billion into the company just last year.