Region: China 🇨🇳
Expected Valuation: $240 million
IPO Date: 2023 (expected)
Key Company Facts
|Industry||Commercial Services & Supplies|
|Number of employees||400|
|IPO Date||2023 (expected)|
|Number of investors||6|
|Total funding||$23.63 million USD|
|Valuation estimate||$240.90 million USD|
Company Overview & History
Founded in 2015 and based in China, AgiiPlus provides integrated work solutions in China and Singapore. The company’s vision is to build the future of work by connecting businesses with technology, data, services, workspaces, and more.
Through its proprietary technologies, AgiiPlus offers brokerage and enterprise services, customizable workspace renovations with smart building solutions, and high-quality flexible workspaces with plug-in software and on-demand services.
AgiiPlus has a unique business model called “S²aaS — Space & Software As A Solution,” which combines “Software As A Service” (SaaS) and “Space As A Service.” As of December 31, 2021, the company had 60 locations in six cities within China and one location in Singapore. The company was previously known as Distrii and rebranded as AgiiPlus in October 2021
AgiiPlus has seen growing revenue over the past years, with total revenue of $72,057,000 in 2021, a 34.7% increase from 2020. However, the company has not generated a gross profit in the past two years, and its financial information is outdated.
The gross profit was -$10,605,000 in 2021, a -15.1% decrease from 2020. Operating profit was also negative, with -$46,015,000 in 2021. The company’s net income was -$60,628,000 in 2021, and its cash flow from operations was $10,348,000. As of December 31, 2021, AgiiPlus had $15.1 million in cash and $537.7 million in total liabilities
AgiiPlus operates under a business model known as “SaaS — Space & Software As A Solution,” which combines “Software As A Service” (SaaS) and “Space As A Service.”
This model uses proprietary technology, SaaS-based systems, and high-quality physical workspaces to provide customers with integrated work solutions for optimal work efficiency.
The firm provides flexible office leasing and connected software capabilities to clients in China and Singapore
AgiiPlus faces several risk factors. The uncertain nature of government lockdown policies in its areas of operation due to the COVID-19 pandemic and the ongoing uncertainty with respect to Chinese company listings on U.S. stock exchanges could impact the company’s operations.
Also, the recent Chinese government crackdown on IPO company candidates and added reporting and disclosure requirements from the U.S. have led to generally poor post-IPO performance for Chinese companies
The market for flexible workspace in China is large but experiencing significant turbulence due to ongoing lockdowns in regions affected by the COVID-19 virus and government policies.
A 2020 market research report estimated the market for flexible workspace in China to grow at a CAGR of 38.3% from 2018 to 2025. However, this report was completed before the onset of the COVID-19 pandemic, which has negatively impacted the industry.
As the industry recovers in regions not affected by recent lockdowns, future demand growth may come from expansion, consolidation through M&A, and a rise in revenue from additional service
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