Indonesia’s co-working space provider EV Hive announced that it has raised $20 million in a series A funding round led by SoftBank Ventures Korea, in what the startup said is one of the largest Series A rounds in Indonesia to date.
EV Hive said the fresh funds will help it accelerate regional rollout efforts, as it aims to launch 100 locations throughout Southeast Asia, including Vietnam, the Philippines, and Thailand, by 2022.
The $20-million Series A investment follows a pre-Series A round in September, which raised $3.7 million for the co-working space provider that manages workspaces in 21 locations in Jakarta and Medan.
Existing investors East Ventures, SMDV, Sinar Mas Land, Insignia Venture Partners, Intudo Ventures, and private tech-focused angel investor Michael Widjaya and Chris Angkasa also chipped in.
Additionally, the co-working space provider unveiled plans to launch new business verticals across co-sharing platforms in residential, retail and storage and implement re-branding to reflect EV Hive’s “evolution as an independent leading player in Indonesia’s co-working sector”.
EV Hive currently manages more than 30,000 square meters of workspaces across Indonesia, with eight additional locations under construction, and more than 3,000 active members.
“We are expanding rapidly across Indonesia, launching two new co-working hubs at Menara Mandiri and Menara Prima in Jakarta, and rolling out new business verticals under our new brands,” said EV Hive CEO and co-founder Carlson Lau.
Founded in June 2015, EV Hive was started by early-stage venture capital firm East Ventures to support its portfolio companies. It was spun off independently in May 2017 due to the company’s growth and strong potential, EV Hive said in a statement.
Indonesia is seeing strong growth among startups and small and medium-sized enterprises (SME). However, most commercial offices are constructed for large tenants, leaving smaller companies with limited options, EV Hive said.
Jakarta, in particular, is one of the world’s most traffic-congested cities, meaning that people spend more time in transit than getting work done.
“With a network of spaces throughout Jakarta, tenants can work at any EV Hive location to minimize time on the road and increase efficiency,” the startup said.
Commenting on its investment, SoftBank Ventures Korea Partner and Managing Director Sean Lee said, “Co-working will become the mainstream platform through which the modern workforce is organized.”
Expanding in Southeast Asia, however, could be a challenge for the Indonesian co-working space provider as other players in this space are also out to dominate the market. For instance, Singapore-based co-working space operator JustCo recently announced plans to set up 100 centres in Asia by 2020.
JustCo earlier also announced its partnership with Singapore’s sovereign wealth fund GIC and listed real estate firm Frasers Property to jointly invest up to $177 million in Asia’s rapidly growing co-working space industry.
Last year, New York-based WeWork acquired Singaporean Spacemob and said it planned to invest $500 million in Southeast Asia and South Korea.
EV Hive, however, is confident about its regional expansion plans despite the presence of other key players in the market.
“We believe that we have a strong local root, community connections and key partnerships. That gives us a unique understanding of the market and our members’ needs,” Lau told DEALSTREETASIA.