HOMA2U, a Malaysian online marketplace for home improvement and interior design supplies, revealed that it has secured US$875,000 (RM 3.87 million) in its pre-series A funding.
The investment round was led by Quest Ventures Asia Fund II, an early-stage venture capital fund managed by Quest Ventures Pte Ltd, a leading Singapore-based venture capital firm. This is Quest Ventures Asia Fund II's second cheque for Homa2U.
Worldwide Management Solutions and Qhazanah Sabah Berhad (QSB) are also participants in the investment round.
The funds will fuel Homa2U's regional expansion plans to capitalise on a fast-growing market, accelerate product development and expand its market capitalisation value, all while striving to promote a circular economy within the renovation and interior design industry.
Homa2U will also channel the funds to help more people amplify their commitment to Environmental, Social and Governance (ESG) sustainability as well as help them meet their ESG goals through their Yellow Boxes and online platform.
The company is also working towards growing the business threefold and will be concentrating its efforts on opening a total of 18 Yellow Boxes throughout Malaysia and Singapore.
Touted as Malaysia's first unmanned interior product showrooms, the Yellow Boxes are mobile pop-up outlets that offer offline-to-online purchase services for visitors.
Quest Ventures Asia fund partner, Jeffrey Seah said that the building, construction and renovation industries have traditionally been characterised as oligopolistic markets, making them near-impenetrable.
"Homa2U has innovatively broken the market entry barriers and levelled the playing field using digital capabilities and data interoperability as ammunition," he said.
This has enabled them to offer their solutions to the masses around the clock, creating impact at every turn.
"This is the very fabric of the digital economy we espouse at Asia Fund II which is encapsulated as digital disruption without leaving anyone behind," he added.
The investment will also be used to support Homa2U with its growth acceleration and scaling plans to realise its goal of becoming an RM100 million annual revenue-generating company before 2025.
Homa2U founder and chief executive officer, Pennie Lim said that the fresh funding is a positive sign of health for Homa2U – considering the wider context of economic pessimism that the property market is currently experiencing.
"This investment will be part of Homa2U's push to ensure added value and elevated convenience for customers as they renovate their homes," she said.
Lim also said that the funding will also enable the company to deliver on their plans to make high-quality, affordable and sustainable home interiors with renovation products easily accessible to all, essentially contributing to a total solution and wholesome experience for them.
"We know that customers want renovation solutions that are seamless and engaging, with everything available under one roof," she added.
Pennie's deep experience, having served the renovation and interior design community for over 5 years, coupled with Homa2U's modern-day retail showroom concept, has enabled the marketplace to undertake an entirely new perspective and technical automation approach that is swiftly changing the landscape of these industries region-wide.
Currently, Homa2U has 20 team members working on business development, customer service and marketing.
Meanwhile, Homa2U co-founder and chief strategy officer, James Yeoh said that sustainability is ingrained into the work that they do and the solutions they offer.
"We champion reducing, reusing and repurposing. This strategy includes acquiring building materials and interior finishing products from unused renovation materials, discarded materials and ageing stocks from merchant brands that are refurbished," he said, adding that this gives our customers a worry-free approach to sustainable renovation.
The participating investment companies strongly believe that this synergistic partnership will further fortify Homa2U's strengths in revolutionising an archaic industry and an untapped market with vast potential.
The construction and renovation industry is quickly adopting circular economy concepts that emphasise sustainability standards and optimal usage of natural resources.
By integrating environmentally friendly practices and social responsibility into their business offerings, Homa2U hopes to set new standards in design and sustainability, helping more individuals and businesses bolster strategies to achieve net zero carbon emission targets.