Rework raises US$3mil in Pre-Series A funding
By Digital News Asia September 11, 2017
- Round co-led by ATM Capital and Convergence Ventures
- Potential to roll out over 35 locations in Indonesia next year
REWORK has announced over US$3 million in Pre-Series A Funding to expand their technology enabled work spaces across Jakarta, Surabaya and Bali.
The financing round was co-led by ATM Capital and Convergence Ventures, with participation from China’s Co-work Unicorn, UrWork, Social Capital, Fortune Union Investments, ACE Capital and new and existing investors.
Vanessa Hendriadi, Rework founder & CEO, is a USC MBA who initially returned to Indonesia to work in her family business managing operations and real estate.
However; after seeing the success of co-working spaces on a business trip in the US and realising the potential for such spaces in Indonesia; she left to start Rework in early 2016.
“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.”
Vanessa has a long-standing passion for business empowerment and the power of in-person networking.
Alongside her professional roles, she served on the committees of both Entrepreneurs’ Organisation Indonesia and AUSCI, the largest US Alumni Association in Indonesia, running member expansion and events.
This experience helped shape her vision for Rework to build collaborative business communities connected through a network of physical locations and tightly integrated digital application.
The work spaces appeal to SMEs not only because of the flexible and cost-efficient plans but also the value of the business community realised through the frequent learning events and networking.
"We're really excited about the opportunities in internet in Southeast Asia and hope to support Indonesian entrepreneurs grow their businesses. Rework as a leader in the co-work space has huge potential and Vanessa as a detailed, operations focused entrepreneur has what it takes to realise this. Looking forward to ATM Capital and Rework's partnership to help more outstanding entrepreneurs grow and build their businesses," says ATM Capital founder and partner Qu Tian.
Mao Da Qing, founder of UrWork, China’s largest co-working space valued at over US$1.3 billion, said “Vanessa clearly showed remarkable passion and purpose in her mission to empower businesses through collaborative work spaces. We see great potential in Indonesia and are excited to partner with them to revolutionise office spaces in Indonesia.”
“Vanessa has grown Rework’s members and revenues quickly with healthy margins great retention, all while maintaining strong capital discipline. We’re excited to support her on this next stage of rapid expansion and growth,” Social Capital’s Ashley Carroll said in a statement.
In recent years, Indonesia has seen exponential growth of digital startups driven by the supply of early stage capital and the prospect of creating highly valuable and disruptive companies for Indonesian consumers and businesses.
The government has also launched several initiatives to support the technology sector including a goal to have 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. However, presently even flexible office space comprises less than 1% of the total office supply in Indonesia.
Ben Neve, CEO of regional real estate business DotProperty, has an eight-member team working from Rework Kuningan and says, “Compared to traditional serviced offices Rework provides an energising and collaborative environment that helps our team be more effective and happier at work, while also saving costs compared to maintaining our own office.”
As Indonesia increasingly becomes a regional hub for businesses in the Asean region and an attractive destination for China based businesses Rework plans to further support and assist international businesses to set up in Indonesia through the business network and integrated services to accelerate business set up and growth.
With the newly raised funding Rework plans to expand its reach to over 35 locations in 2018 enabling its members to “Rework” from anywhere in Jakarta and tier 1 cities in Indonesia.