SPEEDHOME Raises RM7 Million Series A Funding
Kuala Lumpur – Despite the economic downturn, Malaysian based property rental platform, SPEEDHOME, managed to raise RM7 million Series A funding backed by insurers Allianz Malaysia Berhad and regional venture capital firm Gobi Partners. The fund will be capitalized on SPEEDHOME’s regional expansion and tech advancements.
Expansion and Tech Improvement Plans
SPEEDHOME Chief Executive Officer (CEO) Wong Whei Meng explained that “This investment signals promising support from the market towards SPEEDHOME. This fund will help us kickstart our regional expansion in Bangkok and accelerate our efforts towards making SPEEDHOME as the region’s super app for property investors.”
Wong also shared, “Having esteemed investors like Allianz Malaysia and Gobi Partners to join us is a vote of confidence in our vision to offer holistic technology-driven solutions for the property industry.”
Growth Despite The Strained Property Investment Market
Amidst the challenging circumstances last year, SPEEDHOME managed to soften the adverse impact of the pandemic on the property industry with the introduction of its Virtual Viewing and Homerunners services that addressed the restrictions posed by the various Movement Control Order (MCO).
Moreover, SPEEDHOME recorded a 162% year-on-year growth in Gross Written Premium (GWP) contribution to Allianz Malaysia in 2020 compared to 2019. Thus, proving its ability to grow even in the new norm and becoming a game-changing platform for the currently strained property investment industry.
This growth was driven by strong consumer demand for Zero Deposit rental homes that allowed qualified tenants to save a large amount on rental deposits.
SPEEDHOME reported that it has helped tenants free up a total of RM37 million over the years through zero deposit rental. An amount that SPEEDHOME wishes to grow to help people affected by the pandemic free up cash flow spent on rental deposits.
To date, SPEEDHOME has over 575,000 app downloads and over 700,000 tenant enquiries in total. With consumers more conscious of their spending habits, this number is expected to grow further in 2021 as they shift to Zero Deposit rental homes to increase their cash flow.
An increasing number of landlords have also turned to SPEEDHOME, joining the Zero Deposit trend in exchange for a better rental yield. The platform also enabled landlords to secure a tenant fast while protecting their rental properties through insurance better than conventional deposits.
With over 128,000 listings, SPEEDHOME is looking to expand this number exponentially to meet the ever-growing demand from tenants.
Strategic Partnerships To Lead The PropTech Market
Gobi Partners spokesperson shared that ”We are very impressed with SPEEDHOME’s strong growth and ability to become a market-leading platform. In addition, SPEEDHOME proprietary tenant behaviour data set and AI capabilities enabled a more transparent, more accessible and equal-opportunity compared to the existing perception-biased rental mechanism.”
Chairman of Gobi Partners, Thomas G. Tsao said, “SPEEDHOME is one of our first investments for Gobi’s SuperSeed Fund II; in fact, the company was one of the winners of our SuperSeed II Championship last year!
This investment also marks another venture into the booming PropTech industry for our firm; in Indonesia, we currently have two PropTech investments that are doing well during these uncertain times — online short-term home rental marketplace Travelio, and premium coworking space operator GoWork. As such, we see great things ahead for SPEEDHOME, and we are optimistic about the company’s ability to perform well in the Malaysian market.”
Embarking on a partnership in 2017, SPEEDHOME and Allianz jointly developed the Zero Deposit and Landlord Insurance. It proved to be a win-win solution that removes any financial burden for tenants, and at the same time, provides downside protection for property investors.
“Digital partnerships are very much part of our strategy as we look towards capitalising on new opportunities and new markets. To date, we have over 50 active digital partnerships that provide enterprising distribution channels where customers have continuous access to our products and can experience our service.
For example, in the property sector, SPEEDHOME has been a standout partner that continues to amaze us,” said Zakri Khir, Chief Executive Officer of Allianz Malaysia Berhad.
SPEEDHOME aims to expand regionally to 10 other metropolitan cities in the next five years, namely Bangkok, Manila, Jakarta, Taipei, Ho Chi Minh, Hanoi, Melbourne, Sydney, Hong Kong, and Singapore, to emerge as Southeast Asia’s PropTech Unicorn.