JAKARTA (TheInsiderStories) — Indonesia’s co-working and community operator EV Hive announced has secured a US$20 million Series A investment led by Softbank Ventures Korea, H&CK Partners and Tigris Investment, said the company in a press statement on Tuesday (05/06).
New investors, including Naver, LINE Ventures and STIC Investments as well as existing investors East Ventures, SMDV, PT Sinar Mas Land, Insignia Venture Partners, Intudo Ventures and private tech-focused angel investor Michael Widjaya and Chris Angkasa also participated in the funding round.
“We are expanding rapidly across Indonesia, launching two new co-working hubs in Jakarta, and rolling out new business verticals under our new brands,” said EV Hive CEO and co-founder Carlson Lau.
EV Hive currently manages more than 30,000 square meters of workspace in 21 locations across Indonesia, with eight additional locations under construction. Besides opening collaborative workspaces, EV Hive also offers a broad suite of supporting services and a strong community network to support its members in starting and growing their business.
Drawing on the experience and technological expertise of the investor network, EV Hive plans to accelerate its plans for regional rollout of smart co-working spaces.
Softbank Ventures Korea Partner and Managing Director Sean Lee said that after a series of evaluations into various co-working opportunities across the Asia, the company threw its support behind the EV Hive team for its powerful combination of vision and execution focus.
“Co-working will become the mainstream platform through which the modern workforce is organized, and I am confident that EV Hive will be the leading regional player in this exciting new industry,” Lee said.
Meanwhile, Sinar Mas Land CEO Michael Widjaya said that the existing partnership with EV Hive at Breeze Bumi Serpong Damai (BSD) in Tangerang province had successfully attracted the young generation of entrepreneurs and tech-startups.
“We plan to build Indonesia’s Silicon Valley at BSD, and look forward to working closely with EV Hive to bring their community to our new digital park development,” Widjaya said.
Further, H&CK Partners CEO and Founder Jeongjoon Hwang said that the EV Hive’s community comprises of many promising young founders who would follow the footsteps of Go-Jek and Traveloka to create Southeast Asia’s next unicorn startups.
“EV Hive is an incredible platform for us to forge collaboration opportunities between these entrepreneurs and our network of South Korean strategic partners, stimulating a wave of further investments from South Korea into Indonesia,” Hwang said.
Willson Cuaca, Managing Partner of East Ventures added “We welcome our new partners and are confident that EV Hive would win the Indonesia market and beyond.”
The demand for flexible office – including co-working and serviced office – is growing faster in Asia-Pacific than in other places her in the world, according to new research by real estate consultants JLL. Flexible floor space inventory in the region grew by 35.7 percent per year compared with 25.7 percent in United States and 21.6 percent in Europe.
Co-working and serviced office main operators in 12 Asia Pacific markets revealed that a large number of operators flexible space has doubled, while the flexible floor space has increased by 150 percent between 2014 and 2017.
“In 2030, a flexible workspace can include 30 percent of the company’s commercial property portfolio worldwide,” said Susan Sutherland, Head of Corporate Solutions Research, JLL Asia Pacific.
She added, “Despite the adoption of the company is still in the initial period, there are certain factors that will continue to make this area into a hot spot for growth in co – working.”
The main driver in this report is for the government to encourage entrepreneurship offset slower growth in traditional industries such as manufacturing, and offering financial resources and support for small firms, many of whom seek in a stylish space co – working.
However, there are still some obstacles to the widespread use of flexible space. Large companies place a high value on maintaining their brand identity and culture as well as the need to protect data and secure IT infrastructure.
Responding to the growing demand, JLL noted that the owner of the land assets or property it continues forming a cooperative venture with the operator co – working, or make offers flexible space to meet the needs of tenants.
While developers adapt to what could become a new standard in property development where flexible working space will be an important facility in commercial buildings such as food and beverage outlets or space gym.
“Given the competitive dynamics of this new sector, we’ve seen consolidation even among the biggest players. Next to her, looked convergence to continue to grow, with the serviced office operator started providing co-working space and target the users serviced office, “concludes Sutherland.