East Ventures-affiliated co-working chain EV Hive has raised $3.5 million in a pre-series A round led by Insignia Ventures Partners, the company announced today.
The deal marks the first investment by Insignia Ventures Partners that has raised $25 million for its maiden fund.
The pre-Series A round in EV Hive was joined by Intudo Ventures, marking the new VC firm’s debut in the country, Pandu Sjahrir and a network of unnamed angel investors. Existing backers East Ventures, SMDV, and Sinarmas Land also participated in the latest round, which follows a $800,000 round announced in May.
EV Hive claims to be Indonesia’s largest co-working space operator, with a network of seven locations and a pipeline of nine other locations under construction. With the new funding, EV Hive intends to accelerate its growth plans and build additional shared services such as co-living, co-warehousing and other verticals.
Former Sequoia venture partner and Insignia Ventures Partner founder Yinglan Tan said: “(EV Hive is) building a very interesting network effect of talent, founders, companies, advisors and investors. We are excited to be part of the company’s journey as they extend their market leadership and project their strengths in the co-working business to other verticals in the sharing economy across Southeast Asia.”
Indonesia is seeing heightened interests in co-working space business from both investors and players as digital startups begin to proliferate in the country’s new economy, mainly driven by the supply of early-stage capital and a large consumption-based economy waiting to be disrupted.
The government has also launched several initiatives to support the technology sector including a goal to have 1,000 new startups by 2020. All this has fuelled the growth of young businesses seeking modern, flexible work spaces with a strong community component.
With Chinese tech firms expanding in Southeast Asia rapidly, co-working giants have fixed their eyes on the region, and Indonesia, in particular, for the next phase of their expanding growth.
Last week, Indonesia-based co-working space provider ReWork raised $3 million in a pre-Series A led by ATM Capital and Convergence Ventures. China’s co-work unicorn UrWork, Social Capital, Fortune Union Investments, and ACE Capital had also joined the round.
In August, US co-working giant WeWork unveiled plans to invest $500 million in Southeast Asia and South Korea. The firm also announced the acquisition of Singapore-based co-working startup SpaceMob in its latest expansion move.