WeWork is setting its sights on Southeast Asia, however that isn’t stopping native rivals from increase there enterprise. In Indonesia, EV Hive — a co-working model first began by a VC agency — has pulled in $20 million for growth as its U.S.-based rival will increase its concentrate on Indonesia.
The corporate was based in 2015, by seed-stage funding agency East Ventures and some pals, and in the present day it counts 21 areas throughout Indonesia with eight extra in growth proper now. This Sequence A spherical was led by Softbank Ventures Korea with new buyers H&CK Companions, Tigris Funding, Naver, LINE Ventures and STIC Investments participating.
Added to these names, a variety of current backers additionally put into the spherical, together with East Ventures, SMDV, Sinar Mas Land, Insignia Enterprise Companions, Intudo Ventures and angel buyers Michael Widjaya and Chris Angkasa.
EV Hive CEO Carlson Lau instructed TechCrunch that the agency plans so as to add 20 extra areas subsequent yr because it expands its focus from Jakarta and Medan to cowl extra of the nation, which is the world’s fourth largest with a inhabitants of over 250 million individuals. Additional down the road, it goals to succeed in 100 areas by 2022 with strikes into markets like Thailand and Vietnam. The corporate makes its mark with massive areas — sometimes over 7,000 sq. meters per location — and it sees huge untapped potential in Indonesia, the place Lau mentioned there are 10 cities with populations of two million or extra.
Lau mentioned the corporate is already fielding growth requests from abroad however for now the main target is rising a presence in Indonesia. The startup can be trying to do extra for its members, which quantity some three,000 plus as of Might.
Not in contrast to WeWork, it’s constructing out a companies play which features a member-based market that lets fellow members promote companies to one another. Sometimes, Lau mentioned, the main target is areas like accounting, branding and advertising and marketing however the place there are gaps, EV Hive is stepping as much as provide its personal companies, too. The objective there may be to extend income and broaden the companies on provide.
“A rather a lot of co-working areas compete on the identical plain, whether or not it’s design or giving freely freebies, however we really feel we’ve got sturdy execution,” Lau mentioned. “We fill out on the quickest area and the bottom price. The closest competitor has 4 areas and simply one-tenth of our ground area.”
“We’re additionally in an excellent place with a variety of prime VCs invested in us and we’ve constructed an ecosystem of various group companions,” he added.
Lau dominated out potential acquisition-led growth — that’s a route WeWork took to enter Southeast Asia, and it has additionally accomplished the identical in China — however he did concede that the co-working market within the area is getting crowded, significantly as those that began out “pondering the enterprise is cool” start to appreciate it’s more durable than it seems.
“There shall be a wave of consolidation within the coming months,” the EV Hive CEO predicted.