Malaysian food delivery startup Delivereat today announced that it has raised an RM2 million (US$450,000) pre-series A funding round led by Gobi MAVCAP’s ASEAN Superseed Fund.
Currently available only in its home market Penang, the startup plans to use the new funding to expand its services to other cities in the country. It also plans to provide “better benefits and welfare” for its employees and increase marketing exposure to boost sales for merchants.
“This is not a new business model with some new age technology, but it is driven more by the team behind the brand’s ability to execute their plans,” Victor Chua, Gobi Partners’ Vice President of Investment in ASEAN, explained the reason behind the investment in a press statement.
“We definitely like how the team is running the business and we believe that Delivereat will continue to innovate with the vision to be profitable. Our investment exposure in the food sector will be a pillar of support for the company’s expansion into new cities.”
Delivereat was founded in 2012 by Leong Shir Mein and Tan Suan Sear.
The company claims to have served “more than 40,000 customers” per month in Penang, where it has partnered with 200 merchants. The variety of dish offered in the platform ranges from international (Nando’s, Sushi King, Chilli’s and Subway) to local brands (Pelita Nasi Kandar, Sin Nam Huat Chicken Rice and Old Town).
Prior to this round, Delivereat raises pre-seed round by CHI and the Cradle Fund (CIP 150 and CIP 500).
The company was one of the top 20 finalists in Alliance Bank’s Biz Smart Academy SME Challenge in 2014, and was also picked as one of 20 startups by MAGIC for the e@Stanford programme in the same year.
In Malaysia, startups offering similar services to Delivereat includes Foodpanda, Mammam, and WeDapao. There is also the likes of Dah Makan, which prepares and delivers its own food instead of partnering with restaurants.
Image Credit: lim_atos / 123RF Stock Photo