This will also mark the first funding by a private equity firm in the Vietnam’s co-working space sector.
The financing agreement comes shortly after Toong secured a strategic partnership with Singapore-based real estate group CapitaLand in developing co-working space outlets in Ho Chi Minh City.
Toong opened its first location in Hanoi in August 2015 and became the country’s first chain of co-working spaces by launching three others in 2016, one of which was set up in partnership with the Danang Entrepreneurship Support Company.
Toong at the Oxygen – the joint effort with CapitaLand Vietnam — was launched in March 2017, making Toong the biggest player in its field. The partnership will see a series of new co-working spaces in the future.
The operator said the latest funding will help promote the working environment for companies and individuals in Vietnam.
Toong had secured a seven-figure US dollar investment from Vietnam’s investment firm Openasia Group in early 2016.
In conjunction with the cash injection by Indochina Capital, Peter Ryder, founder and CEO of the real estate investment fund, and Doan Viet Dai Tu, co-founder and chairman of Openasia Group, will join Toong’s board of directors.
“Indochina Capital is always looking for excellent Vietnam focused investment opportunities. When Toong came to our attention, we were immediately interested because the company has the largest and widest footprint of any co-working space provider in Vietnam,” said Ryder.
The private equity firm said Toong, as a new portfolio company, will complement Indochina Capital’s lifestyle brand, which is rolled out via the ICC-Kajima development platform.
Indochina Capital and the Japanese realty firm are equal partners in this $1 billion joint venture, which will be investing in Vietnam over the course of 10 years.
“Innovative change dominates the global real estate industry not just in Vietnam. This is evidenced by a growing number of companies that utilise co-working models to encourage disruptive ideas and cutting-edge technology in collaboration with other firms… Indochina Capital and Toong will produce a portfolio of unique iconic spaces to nurture Vietnam’s entrepreneurial intelligence and culture,” said Ryder.