Brezze Malaysia looks to raise US$71,436 on Ata Plus
By Digital News Asia May 31, 2019
- The funds will contribute to operations and marketing initiatives
- Aims to place stations every 500m in high traffic areas
BREZZE Malaysia Sdn Bhd, the company behind the Brezze-branded power bank rental stations, is raising US$71,436 (RM300,000) on equity crowdfunding platform, Ata Plus to build and lead the power bank sharing ecosystem in Malaysia.
The funds raised will contribute to the business’ operations and marketing initiatives.
Since September 2018, the company has held the master license for Malaysia of the Brezze stations that originated in Singapore and are now present worldwide.
Brezze has set out to solve the dead mobile phone battery problem with a charging network. However, rather than offer fixed charging points, the company offers a solution that lets you rent a mobile charging pack from one destination and return it at a different location if needed.
The power bank-sharing concept works through a mobile application, through which users can locate the closest station, scan a QR code and retrieve a power bank from vending machines.
These rental power banks can accommodate both Apple and Android devices and users are charged a flat rate of RM1/hour and RM15/day. After use, the battery packs can be returned to any charging station.
Brezze aims to place these stations every 500m in high traffic areas such as F&B outlets, shopping malls, and public transportation stations.
Brezze holds an edge over its competitors in Malaysia with its deposit-free model. Data from iiMedia Research shows the “free deposit” model could attract more users. About 15.3% of survey respondents cited the deposits as a reason for not using power bank sharing services.
Meanwhile, 60.4% of respondents said the deposit was a decisive influence in choosing an operator.
“The recent bankruptcies among bike-sharing companies, where some consumers lost their deposits, has damaged trust in that model,” said Brezze Malaysia chief executive officer Kuhan Ganeswaran.
The industry has seen major investment in the UK with startup ChargedUp receiving GBP1.2 million (RM6 million) in seed funding in February 2019 and became the first company to be accepted into a retail startup accelerator programme led by Marks & Spencer.
“We are confident Brezze will see similar outcomes and success in Malaysia. We all know how frustrating a low battery is. Our goal is to never be more than 500m from a charge,” says Kuhan.
Brezze Malaysia is seeking the support of the community to build the business further. The funds raised in Brezze Malaysia’s first ECF investment round on Ata Plus will be used for operations, sales and marketing.