Patrick Grove’s Catcha backs merger of 3 Asian co-working players

Three co-working players in Asia Pacific – Common Ground, The Hive, and The Cluster – have merged to create a new holding entity called The Flexi Group. The merger was backed by Malaysia-based Emissary Capital and Patrick Grove’s Catcha Group.

The Flexi Group is expected to be headquartered in Kuala Lumpur and led by Chris Edwards, who previously served as The Hive’s COO.

Photo credit: The Flexi Group

After the merger, The Flexi Group will operate 45 co-working spaces in nine countries, which were previously owned by its three predecessors. The company said that the deal also serves as a step toward an IPO, which will enable it to acquire other co-working firms in the region.

The company counts local conglomerates such as Malaysia-based Petronas, Thailand-based Central Group, Hong Kong-based Chinachem Group, Philippines-based Ortigas, and Australia-based Hirsch and Faigen as its landlord partners.

In a statement, The Flexi Group said that it will continue to use its three brands. “Our multi-brand for a multi-demographic approach gives us the opportunity to partner with landlords across a variety of asset classes across Asia and Australia,” Edwards said.

The co-working space firm aims to have 100 locations in the next three years.

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Among the three co-working space players that merged, The Cluster has been operating the longest. It was established in 2010 and has several locations in Australia. Meanwhile, Common Ground was founded in 2017 and operates around 20 locations in Malaysia, Thailand, and the Philippines.

The Hive, established in 2012, is the company with the most geographical coverage. The Hong Kong-based firm has 21 locations in seven countries.