WeWork’ High-End Competitor ‘Industrious’ Raises $80M to Accelerate Expansion
Latest investment to fuel expansion and growth goals, support data-driven innovation in structural workspace design.
Industrious, a New York-based premium workplace platform and coworking solution, has closed a $80 million series C funding round co-led by Riverwood Capital and Fifth Wall Ventures.
A predominant force in the coworking industry with an American footprint of 35 locations, Industrious provides five-star service, best-in-class workplace management and stunning design for companies ranging from SMBs to the Fortune 500. The Industrious workplace platform enables businesses of every size and stage to fully outsource their office space management needs, balancing enterprise-class, productivity-oriented workspace solutions for companies with top-notch hospitality and welcoming work environments for their employees. The company also works hand-in-hand with landlords and real estate firms, with a proven record for increasing commercial property values and improving tenant retention rates.
This series C funding is rounded out by investors from Alrai, Outlook,Rabina Properties, Schechter Private Capital, and Wells Fargo Strategic Capital.
“The workforce is rapidly evolving, as are its demands for flexibility, mobility and scalability; at the same time, employee expectations for beautiful and productive work environments are increasingly high,” said Jamie Hodari, cofounder and CEO at Industrious. “The coworking industry is maturing to meet these demands, and established companies are seeing coworking as a powerful and efficient solution to their office management needs. Over the next year, we’ll continue to see a paradigm shift in how the business world defines and makes use of the coworking model, and Industrious is leading that charge.”
Throughout the course of the last year, Industrious has more than tripled its location footprint across 25 cities in the United States. More than 75 people joined the Industrious team in 2017 and the group behind PivotDesk (acquired approximately one year ago) launched Central, a new, curated marketplace for flexible, sophisticated office space. The company has also grown at 150 percent CAGR from 2015 to 2017. The series C financing will allow Industrious to continue its expansion trajectory. The funding will also be used to support further experimentation and exploration surrounding the future of work and workplace technologies, which will lead to more efficient and effective use of space.
“We continue to see a significant transformation in the way that companies approach the workplace, as they increasingly look for a collaborative, multi-functional and premium office space for their employees and partners, with added flexibility and services,” said Francisco Alvarez Demalde, cofounder and general partner of Riverwood Capital. “Since our first investment in Industrious in 2016, we have seen the company grow exponentially and deliver a unique experience for its members, as they build their own modern workspace within an Industrious office. We believe Industrious will play an important role in shaping the future of how we work, and are excited to continue being a part of the Industrious journey.”
“Coworking is one of the most exciting and promising developments in the world of commercial real estate. Industrious is the clear leader for Class A landlords and their corporate tenants and we are consistently impressed by the company’s ability to build powerful real estate partnerships that provide immense benefit to every party involved," said Brad Greiwe, cofounder and managing director at Fifth Wall. "We believe that the Industrious team will broadly and dramatically improve the way in which landlords and property owners manage their commercial office space and we’re thrilled to be an active participant in the realization of their vision, as we help them structure programmatic partnerships across our investor base and broader real estate community."
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