Rework raises $3 mn from ATM Capital, Convergence Ventures
co-working space provider Rework has raised $3 million in a pre-series A financing round led by ATM Capital, and Convergence Ventures, the company said on 7 September.
Chinese co-working unicorn Urwork, Social Capital, Fortune Union Investment and ACE Capital as well as existing investors participated in the round.
The new funding will enable Rework expand work spaces across Jakarta, Surabaya, and Bali, the firm said. It is aiming for 35 locations in 2018.
Rework was founded in 2016 by Vanessa Hendriadi, who gained the experience of managing business communities from her time with Entrepreneurs’ Organization Indonesia and AUSCI, a US alumni association in Indonesia.
Commenting on the investment, Hendriadi said: “After experiencing the energy and value a collaborative work space could provide to small businesses, I knew this would be a huge opportunity in Indonesia and that I had the right background and network to create a uniquely valuable product.”
Indonesia is seeing rapid growth of digital start-ups, 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 the goal of hosting 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.
Presently even flexible office space comprises less than 1% of the total office supply in Indonesia, according to founder of Urwork Mao Daqing,
Rework’s members and revenues have grown quickly with “healthy margins great retention, all while maintaining strong capital discipline,” Mao said.
“We see great potential in Indonesia and are excited to partner with them to revolutionize office spaces in Indonesia,” he said.
In China, Urwork has 88 locations in 22 cities with a total valuation of around $1.5 billion. It has announced plans to expand into 32 cities worldwide over the next three years.
Meanwhile, Ben Neve, CEO of regional real estate business Dotproperty, said: “Compared to traditional serviced offices Rework provides an energizing and collaborative environment that helps our team be more effective and happier at work, while also saving costs compared to maintaining our own office.”