A major challenge facing growth-stage startups in Malaysia is lack of funding. While there are quite a few early-stage venue funds to cut cheques for startups in the seed stage, there are not many who are willing to inject money in their growth stages. This often discourages startups from aggressively pursuing scaling and expansion plans.
In a recent interview with e27, Raja Hamzah, Managing Partner of RHL Ventures, an active VC in Malaysia, admitted that there is still a big funding gap in the growth-stage startup space. Even though the previous government had set up a RM 1 billion fund to bridge this gap, it failed to materialise. The good thing is that many VCs including RHL Ventures are now seriously considering to launch funds to invest in growth-stage firms.
While many tech companies are struggling to raise growth funding, there’re a few who have bucked the trend and weathered all the odds to become a brand name in their respective industries.
Founded in November 2014 by Cheong and Choong Fui-Yu (Group CEO), Kaodim is an online platform to hire local services professionals such as house cleaners, home renovators and photographers. The firm operates as Kaodim in Malaysia and Singapore, Gawin.ph in the Philippines, and Beres.id in Indonesia. It is currently operating in Kuala Lumpur, Penang, Johor Bahru, Metro Manila, Singapore and Jakarta.
Since launch, the group has focused on expanding its presence in the Southeast Asian region. On the product front, the group introduced a new product called Kaodim Direct, which is aimed at providing an enhanced experience for selected services such as cleaning or air-condition servicing. Users are matched instantly to a highly rated service provider at a competitive fixed packaged price.
To date, the group has raised a total of US$11.6 million in funding over three rounds, including a US$7 million led by Square Peg Capital and an affiliate of SIG Asia Investment in November 2017. Its other invests include Venturra Capital, Beenext, 500 Startups, East Ventures and KK Fund.
The original article was written by Sainul Abudheen K and can be found at https://bit.ly/2IIZwff