Flexible workplace provider Knotel secured its place as New York’s newest unicorn on Wednesday after it closed $400 million in financing.
It’s been a swift rise in the workspace game for Knotel. After launching as a competitor to WeWork less than four years ago, the company has added 200 locations in cities around the globe, grown to more than 4 million square feet of office space and raised a total of $560 million.
Wafra led the financing round, which brings Knotel’s total valuation to $1 billion. The company plans to continue its rapid growth, and will use the fresh capital to expand into additional global cities, Amol Sarva, Knotel’s co-founder and CEO, said in a statement.
“Knotel is building the future of the workplace, and we are excited to welcome a group of investors who believe passionately in our product, vision and ability to execute,” Sarva said. “Wafra will help us continue our rapid global expansion and solidify our position as the leader in a fast-growing, trillion-dollar flexible office market.”
Knotel is building the future of the workplace, and we are excited to welcome a group of investors who believe passionately in our product, vision and ability to execute.”
Knotel got its start in 2016 as an alternative to the traditional coworking space model. Rather than focus on a communal workspace for small companies and freelancers, the New York-based firm decided to cater to the mid-level and enterprise business market.
The company works with businesses to acquire an office space, then designs it to their needs and requirements. After building and furnishing the space, Knotel helps companies manage their internal operations needs. The firm has carved out office spaces in some of the largest cities in the world, including New York, London, Madrid, Berlin, Chicago and more.
In addition to acquiring more office spaces, Knotel plans to use the funds to invest in its technology. The company recently released a platform called Baya Network, which uses blockchain to track transactional history of commercial real estate listings and then allow people to enter into their own contract agreements. It also released a subscription service for companies to rent office furniture.
Three Japanese firms participated in the financing: Mori Trust, Itochu and Mercuria. Previous investors Norwest Venture Partners, Newmark Knight Frank, Bloomberg Beta and Rocket Internet also participated in the round.