By Poh Boon Yow on May 23, 2019, 5:04:59 PM
- SPEEDHOME raised more than 8.34 times the minimum fundraising amount
- 205 investors invested on SPEEDHOME
- the largest crowdfunding company since 2019
- this year will be a rapid growth year for SPEEDHOME business
(April 25) SPEEDHOME (formerly Speedrent),the secure end-to-end direct
property transactional platform, has successfully raised RM2.5 million through the equity crowdfunding platform, making it the largest crowdfunding company since 2019.
SPEEDHOME Chief Executive Officer Wong Whei Meng said, “With the accumulation of goodwill for several years, we successfully raised funds. The funds will double the company's business development speed. Judging from the enthusiastic response from this crowdfunding, the market's interest in technology companies has not diminished, which is in line with the government's push for digital economy initiatives.
Through the country's most popular platform PitchIN, SPEEDHOME raised more than 8.34 times the minimum fundraising amount of RM300,000 with a total of 205 investors.
SPEEDHOME’s future plans
As to how the funds will be used, Wong Whei Meng stated: "60% of the funds raised will be used for marketing, 20% for expanding our talent pool and 20% to strengthen the company's research and development (R&D)."
He added that this year will be a rapid growth year for SPEEDHOME business. In the second half of the year, the company will launch a series of new services like On-Time Guarantee rental, a Homerunner initiative and the purchasing of property.
Wong Whei Meng pointed out that SPEEDHOME's plans for the next few projects aim at reducing the economic burden of Malaysian residents through the combination of online and offline (O2O) services. At the same time, the company uses digital technology to improve overall efficiency and provide insurance protection services for landlords. This allows the company to let tenants or buyers find homes to stay at a more affordable price and a safer environment.
A valuation of RM38 million
After the completion of the crowdfunding, the company's current valuation stands at an impressive RM38 million. Also, this valuation exceeds the value of some of the penny stocks in Bursa Malaysia.
Wong Whei Meng is confident in building the future unicorn of Malaysia.
The veteran entrepreneur explained: "The potential market for property services in Malaysia is huge, especially the Klang Valley residential rental market. According to the population forecast of 10 million in Greater Kuala Lumpur in 2020 and one household usually has 4 people. This means that Greater KL needs 2.5 million houses. But because of the increased cost of living and state of the economy, fresh graduates and low-income Malaysians can only choose to rent a house. We at SPEEDHOME help lessen the financial burden with how we operate."
SPEEDHOME is no stranger to investors and influential figures. Major players like IJM RE, a subsidiary of local construction giant IJM, Silicon venture fund 500-Startups and founders of FAVE, Southeast Asia’s fastest-growing O2O platform Joel Neoh and Yeoh Chen Chao have participated.
The Malaysian Securities Commission began issuing equity crowdfunding licenses in 2016. There are currently only 7 licensed equity crowdfunding companies operating in Malaysia and these seven have raised RM48.7 million for SME and start-ups. More than half of the participants are retail investors.
With the latest addition of SPEEDHOME’s fundraising, the amount has risen to more than RM50 million in the past 3 years.
Established in 2015, Speedhome is a free No Deposit, No Commission automated platform connecting landlords directly to quality tenants providing rental protection and house-purchasing services. Their mobile app has exceeded 300,000+ downloads on Play Store and App store. They have a database of more than 56,000 property listings and 63,000 potentials in their high-quality tenant pool. Homebuyers’ financial burdens are also eased with a No Commission policy with the purchase of a property.
Speedhome aims to simplify the rental process, making it transparent and secure for both landlords and tenants. They combine mobile technology and automation to bring together a pool of high-quality tenants, transparency and interactivity for all users to make more informed decisions during the rental search experience.
Landlords are free to advertise and manage their properties and contact potential tenants anytime, anywhere. Partnered with Allianz General Insurance, Speedhome the first rental platform that provides insurance and rental protection of up to RM26k, covering more than standard security deposits.