Regional P2P car-sharing platform Moovby secures US$500k funding, eyes Thailand, Singapore next
By Karamjit Singh February 6, 2020
- New funds from combination of strategic investors and angels
- Claims renting out car 5 days a month can cover monthly installments
[Article has been updated with clarification on its Singapore presence.]
Capping up a good year, Malaysian peer-to-peer car-sharing platform Moovby, which allows people to rent out their idle cars, announced it closed out 2019 having secured US$500,000 (RM2.06 million) from angel investors and strategic partners. The funds will be used for regional expansion into other Southeast Asian markets in 2020, namely Singapore and Thailand says its founder and CEO, Nik Muhammad Amin.
Contrary to a Singapore based media report that it is moving its HQ to Singapore, Nik tells DNA that is has opened a Singapore incorporated company for its operations there and to accommodate the request of some potential investors who would prefer to invest in a Singapore registered legal entity. "We are not moving our HQ anywhere from its present Kuala Lumpur location."
On the use of the newly raised funds, Nik says, "This capital accelerates our ability to build upon partnerships and increase marketing efforts, further strengthening our ability to enable as many people as possible to share their cars."
The current investment brings Moovby’s total funding raised to US$724,000 to date, following as initial US$150,000 worth in grants and funding from Cradle Fund Sdn Bhd and TERAJU when the startup launched in 2017. TERAJU is a government fund set up to specifically help Bumiputera Malaysians.
Moovby was also recently announced as one of the 10 regional startups set to receive US$74,000 in growth funding from Accelerating Asia, a Singapore-based early-stage VC firm and startup accelerator. Moovby was part of Accelerating Asia’s second cohort.
While it has not shared its plans to Thailand and Singapore, Moovby states that Indonesia contributes “a sizeable chunk” of its “user base, current growth and future plans”.
It expanded to Indonesia six months ago following Nik’s participation in a 2018 market exposure programme by Malaysian Digital Economy Corporation (MDEC).
At the moment, more than 3,000 vehicles have signed up on Moovby’s platform across Indonesia (including Jakarta, Bandung and Bali) and major cities in Malaysia.
The company claims that its data shows having your car on Moovby and rented out 5 days a month is enough to cover monthly car loan installments, maintenance, insurance, and more. From a Perodua Axia, a Malaysian car, to a Rolls Royce Ghost, it claims users can rent a car for as low as US$1.45 (RM6) an hour, with Moovby hosts making an average of US$364 (RM1,500) each month.
Its Indonesian expansion got a boost through a partnership with online-travel-agency Traveloka, with Moovby providing car-sharing services to it. According to Moovby, this has immediately seen it receive thousands of booking monthly from Traveloka while hosting more than 1,500 cars on Traveloka within the past six months. The partnership has recently been extended to Malaysia with further plans throughout Southeast Asia in the pipeline.
What’s next for the Kuala Lumpur-headquartered car-sharing platform? "We are excited to continue driving growth in existing markets, while also bringing Moovby to more communities across Malaysia, Indonesia and soon in other countries in Southeast Asia," says Nik.