Erman Akinci and Juhn Teo
Cover Erman Akinci and Juhn Teo

Common Ground founders Erman Akinci and Juhn Teo share their excitement over the merger to form The Flexi Group and their preparations to list the company on the Nasdaq

Coworking has become an increasingly popular option for businesses and individuals seeking a flexible and collaborative workspace. Though coworking is traced back to the mid-1990s, the modern incarnation took off in 2017.

Recognising a shift in the traditional office model, Erman Akinci and Juhn Teo founded Common Ground in 2017. The brand has since become a mainstay in Malaysia’s coworking scene, with 14 office locations in Kuala Lumpur, Selangor, Penang and Johor Bahru.

“We started Common Ground at the right time, just as interest in coworking spaces took off from 2017 to 2019. The one difference I’ve noticed today compared to back then is that coworking has become mainstream,” says Teo.

According to him, there is a noticeable increase in demand over the years for community-based offices that prioritise lifestyle, as opposed to traditional offices that typically consist of rows of cubicles.

“In the digital age, there are fewer boundaries and borders. People want to form a connection with the individuals they spend eight to nine hours per day with,” says Akinci. He notes that in the last two to three years, Common Ground has received interest from major corporations such as Amazon, Huawei, eBay, PepsiCo and GSK, who house their staff at Common Ground locations."

Read more: 7 coolest coworking spaces in Penang

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Juhn Teo and Erman Akinci
Above Juhn Teo and Erman Akinci started the coworking space in 2017

He adds: “The fact is that even multinational corporations (MNC) have evolved to think about what the modern office looks like and how they want to attract and retain talent by offering their staff the ability to work from different locations.

“Instead of commuting 45 minutes to the downtown area, employees at MNCs want access to an office 15 minutes from their home. Common Ground is well-positioned to offer this flexibility to our MNC tenants as we have a large network of coworking spaces."

See also: 8 inspiring offices that will make you want to stop WFH

Both Teo and Akinci explain that the plan for Common Ground to expand regionally was always in the pipeline. Having established its foothold in Malaysia, the company expanded its presence to the Philippines and Thailand in 2018. Still, the duo wanted to take Common Ground further to other countries in the Asia-Pacific.

“We didn’t want to wait and grow organically because we saw the opportunity to expand quickly. In 2022, Common Ground merged with two regional coworking brands: the Hive from Hong Kong and Cluster from Australia. It was synergistic because they were of equal size with us and operated in countries we weren’t in,” says Akinci.

Together the three brands formed The Flexi Group, a collection of coworking spaces spanning 45 locations in 12 cities and nine countries in Asia-Pacific and Australia. Teo justified the move by saying that the coworking industry is evolving similarly to the hotel industry, where consolidations have occurred over the last 20 years along with the emergence of large groups.

Teo and Akinci recall the moment after the merger that there was a significant jump in interest from the investment community. “We were receiving inquiries from investors locally and internationally,” says Teo. “We heard from bankers, private equity firms, and advisors who presented us with proposals for further acquisitions. It even made us consider to get listed on the stock market.”

The merger set the newly formed group on a path to pursue a listing on the Nasdaq in 2023. “In a short period, we have doubled our size and put the business on a completely different level,” says Akinci. While taking a company public is often considered the highlight of an entrepreneur’s career, Teo and Akinci recognise that there is still a long road ahead. Going public also presents unique challenges; nothing can fully prepare an entrepreneur for it because of the many requirements that must be met.

But is it the best time to list, given the headwinds facing the economy in 2023? Teo is aware of the risks, and there is an argument to be made that the timing isn’t perfect, as public markets are volatile. However, he counters that these are short-term views and the long-term benefits of the listing outweigh the negatives. “We see the listing as a way to broaden our ability to attract capital from different parts of the investment world that we couldn’t have done if we remained private,” he says.

Beyond Common Ground and The Flexi Group, both Teo and Akinci are turning their attention to investing in other startups. They started Emissary Capital, a boutique investment firm focusing on opportunities in the ASEAN region and are looking to raise a US$200 million fund over the next few years.

Akinci explains, “With our entrepreneurial experience, we saw a massive funding gap in the startup ecosystem. There are a lot of small, medium enterprises similar to Common Ground that are stable and profitable but are not attractive to investors.”

Teo describes Emissary Capital’s investment strategy as focused on helping startups drive value during their growth stage and get up to speed operationally. “We identified promising opportunities that other investors were overlooking and built a portfolio of companies that show great potential.”

Looking back at how far they have come, Akinci and Teo take pride in being pioneers in the coworking industry. “I am proud to be part of a Malaysian company that has quickly become the leading player in this space,” said Teo. “This achievement is especially notable as we prepare to list on Nasdaq. Few companies can boast of going from inception to becoming a US-listed company, a badge of honour we wear with pride.

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