diff --git a/lib/colocated-babel-plugin.js b/lib/colocated-babel-plugin.js
index <HASH>..<HASH> 100644
--- a/lib/colocated-babel-plugin.js
+++ b/lib/colocated-babel-plugin.js
@@ -24,7 +24,7 @@ module.exports = function (babel) {
       ExportDefaultDeclaration(path, state) {
         let defaultExportDeclarationPath = path.get('declaration');
         let defaultExportIsExpressionOrClass =
-          defaultExportDeclarationPath.isClass() || defaultExportDeclarationPath.isExpression();
+          defaultExportDeclarationPath.isClass() || defaultExportDeclarationPath.isExpression() || defaultExportDeclarationPath.isFunction();
 
         if (
           state.colocatedTemplateFound !== true ||
Update lib/colocated-babel-plugin.js