ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Startups

Indonesian startup rides Southeast Asia's booming office-sharing market

GoWork attracts $10m Chinese investment to bolster ops amid fierce competition

Employees work at Mediatrac, a data analytics startup in Jakarta.   © Reuters

HONG KONG -- Indonesian coworking space provider GoWork announced on Oct. 10 that it has secured a Chinese investor to close its fundraising round. The fresh investment comes as office sharing gains popularity in Southeast Asia's growing tech sector. International investors, including Japan's SoftBank Group, are becoming enthusiastic about the booming industry.

GoWork's series A investment totaling 13.8 million Singapore dollars ($10 million) announced on Oct. 10 was led by Chinese venture capital firm Gobi Partners and developer Indonesian Paradise Property. The Jakarta-based startup received a $2.5 million investment last year led by Ucommune, China's largest coworking company.

Other startups are drawing investor cash. EV Hive, a rival in Jakarta, received $20 million in June from investors including Japan's SoftBank Group. Common Ground, a major Malaysian coworking space operator, completed series A financing of $20 million the same month. And late last year, Singapore's JustCo raised $12 million to expand its presence across Southeast Asia.

GoWork offers shared workspace options ranging from a hot desk for about $8 per day to a private office at a monthly fee of $183 at offices across Jakarta, Surabaya and Bali. The majority of its 600 corporate clients are established tech companies such as Southeast Asian ride-hailing leader Grab, as well as multinationals, CEO Vanessa Hendriadi said.

The new funding will be used to bolster operations, increasing coworking space from the current 10,000 sq. meters to nearly 25,000 by early 2019, the company said.

Players from outside the region are also moving in. American coworking leader WeWork last year acquired Singapore's Spacemob as part of its $500 million investment plan to grow in Southeast Asia. Amsterdam-based Spaces debuted in the region in February, with a new office in Bangkok.

Market watchers attribute the fast expansion to Southeast Asia's status as a hot spot for startups and digital nomads, thanks to the region's relatively low cost of living, tech-savvy young workforce and digital infrastructure.

Coworking sites could constitute roughly 15% of Southeast Asia's office space by 2030, up from 5% now, global property consultancy Jones Lang LaSalle estimates.

Hendriadi thinks her company can snare a slice of this multibillion-dollar market. The 2-year-old startup claims to have achieved a nearly 100% occupancy rate at its 16 locations while turning profitable. In February, GoWork merged with local rival ReWork to strengthen its market position.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends June 30th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media