HOMA2u, a Malaysian startup specializing in renovation and interior design materials, has successfully raised US$1.5 million (RM7 million) in a Pre-Series A funding round led by Asia Fund X. This strategic investment is set to enhance the company’s carbon reduction tracking initiatives and facilitate its expansion beyond Malaysia.
As part of its mission to integrate sustainability into its business model, HOMA2u focuses on reducing its carbon footprint through innovative practices. The company collaborates with certified environmental consultants to measure the carbon impact of its operations, particularly in repurposing overstock materials. Each sale of overstock tiles, for instance, saves approximately 16.42 kg of CO2 per square meter, preventing unnecessary disposal and reducing the demand for new tile production. These savings are quantified using established industry standards and scientific best practices, ensuring meticulous and transparent carbon accounting.
HOMA2u has issued green certificates to companies it collaborates with, thereby setting new benchmarks for environmental accountability in the renovation and building materials industry. To date, the company has repurposed over US$4.2 million (RM20 million) worth of overstock inventories, benefiting more than 8,000 homes. With an ambitious goal to save 7.5 million kg of carbon by the end of 2024, HOMA2u aims to solidify its position as a leader in sustainable practices within the sector.
Pennie Lim, Co-Founder and CEO of HOMA2u, stated, “As HOMA2u commemorates its seven-year journey, it stands at the precipice of a new era, driven by innovation and sustainability. Our vision for the company remains to redefine the business landscape for the built environment, but we are also cognizant of the sustainable impact we bring to the table”.
The funding from Asia Fund X will be pivotal in HOMA2u’s efforts to extend its market presence beyond Malaysia and Singapore, targeting high-growth regions such as Taiwan and Japan. These markets are recognized for their progressive attitudes towards Environmental, Social, and Governance (ESG) construction, aligning well with HOMA2u’s sustainability ethos. The company has initiated its expansion into the Singapore market, operating out of its Johor Bahru office, with plans to establish a physical presence in Singapore. HOMA2u is advancing its pipeline of projects and collaborations within the built environment industry, aiming to materialize its strategic objectives in new markets.
HOMA2u operates through an online-to-offline marketplace that offers overstock and retail renovation materials, including innovative solutions like its Yellow Boxes. The company has built the Pro+ ecosystem, encompassing over 1,000 industry stakeholders, including interior designers, architects, suppliers, and contractors. Pro+ serves as a platform for the community to access curated perks and value-adding services, enhancing the overall marketplace experience.
James Yeoh, Co-Founder and Chief Strategy Officer of HOMA2u, emphasized the importance of technology in driving the company’s value creation. “This gives us data about our customers’ profiles, allowing us to further refine our value propositions to them, while also refining our inventory acquisition strategy as we lead the charge in transforming waste into invaluable resources,” Yeoh remarked. HOMA2u’s digital platform capabilities, combined with AI-powered data analytics, underpin its competitive advantage, aligning with the broader trends towards a circular economy.
Jeffrey Seah, General Partner at Asia Fund X, highlighted HOMA2u’s disruptive potential in traditional industries. “HOMA2u has continued to make headways into traditional industries known for being monopolistically competitive or insular oligopolies. Sustainability is not merely a competitive advantage but part of wider industry trends towards a circular economy”, Seah noted.
He added that the company’s success is a testament to the mature business acumen of its founders, Lim and Yeoh, and the vast market opportunities available. “The company’s true competitive advantage comes from its foundations set via digital platform capabilities synergised with AI-powered data analytics - quintessential hallmarks of the digital economy revolution. We look to both co-founders to scale HOMA2u across the region, bolstered by the wider business world's maturing awareness of ESG.”
With this latest infusion of capital, HOMA2u is well-positioned to capitalize on increasing consumer demand for sustainable building and renovation practices. The company aims to consolidate the new ESG-focused landscape by leveraging its industry networks, technological advancements, and consumer trust.
HOMA2u’s continued commitment to sustainability, combined with its innovative business model and strategic market expansion, positions it as a frontrunner in the evolving marketplace for renovation and building materials. As consumer and regulatory focus on sustainable practices intensifies, HOMA2u is poised to play a pivotal role in shaping the future of the built environment industry.