Re­work raises $3 mn from ATM Cap­i­tal, Con­ver­gence Ven­tures

Mint Asia ST - - Inside - BAY NTONIA T IMMERMAN

In­done­sian

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.”

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