CoHive raises US$13.5M+ in Series B funding round, aims for US$20M
Co-working space operator CoHive announced a US$13.5 million Series B funding round led by Stonebridge Ventures. Other participating investors in the round included Kolon Investment, Stassets Investment, a local property developer as well as existing investors from the company’s Series A funding round such as H&CK Partners.
CoHive CEO and Founder Jason Lee stated that the Series B funding round will be closed at US$20 million. The company expected to hit the final number by the end of the year. It was the exact same number that the company has managed to close for its Series A funding round last year.
The funding will be used to fund the expansion of its co-working space into new locations in Jakarta, Surabaya, Bandung, and Makassar. The company also aims to develop new products in the co-living and co-retail sectors, though it still has no plan to expand beyond Indonesia.
“There will be nine new co-working space locations that are ready to build; we are going to have up to 40 locations by the end of the year. There is also a possibility of [setting up a coworking space] in other potential locations, as we go where the demands are,” Lee explained on Wednesday, June 19.
In total, CoHive owns 31 locations in four Indonesian cities: Jakarta, Medan, Jogjakarta, and Bali with the total area of 65,000 square meters. The company has secured around 9,000 individuals and 8,000 startups who are renting their space on a monthly basis.
Formerly known as EV Hive, CoHive has been operating since 2015 as a project by East Ventures. The company has been making aggressive moves in the sector, considering how it was only available in 17 locations (30,300 square meters with 3,100 members) in June 2018.
CoHive claimed to lead the Indonesian co-working space sector in Indonesia by having the biggest number of locations, followed by GoWork, Kolega, Union Space, Freeware Space, and Conclave.
New products by CoHive
At the same occasion, Lee also introduced the company’s three new products: CoLiving, CoRetail, and CoHive Event Space. The company also inaugurated its first building CoHive 101, which is located in the Mega Kuningan area of South Jakarta.
CoLiving is a combination of co-working and co-living space with a first location at Tower Crest West Vista, West Jakarta. The product is the result of a collaboration with Keppel Land Indonesia.
CoLiving provides 64 rooms with a total size of 2,800 square meters. Lee claimed that the first floor of CoLiving has started operations in May with a 90 per cent occupancy rate. Its second floor will be launched in September.
CoRetail is a flexible and affordable service meant for retail businesses that are selling its products in startup communities such as CoHive. The product offers temporary pop-up stores, permanent stores, and canteen for these businesses.
This new product is available on the ground floor of CoHive 101. Tenants that have been using the service included Go-Food Festival, Fore Coffee, Pepenero Bakery, and Bukalapak.
“CoRetail makes it easier for retailers to start selling without the need to pay for deposits, which makes it hard for them to start their operations. We provide a different offerings from shopping malls, which require them to rent a space for three to five years and pay for 12 months in advance.”
Lee explained that their new product CoHive Event Space was meant to help their members and business partners in hosting meetings and company events. With its considerable number of branches, the product offers an opportunity for the company to maximise the use of existing space.
The CoHive 101 building was also launched during the same occasion. The building has a capacity of 2,700 individuals and included a coworking space, a private office space, CoRetail, an event space, a canteen, and other facilities. The company claimed that it has secured an occupancy rate of 75 per cent.
“CoHive also offers build-to-order option for startups with more than a hundred employees. Cermati and TaniHub have reached out to us to join, as they are attracted by the opportunities for collaboration that we offer,” Lee ended.