Malaysian Proptech Startup Building Apps For Easy Home-Buying
MHub started in 2015 with 3 people, a simple idea and no funding.
They saw a problem to be solved in the Malaysian real estate industry: the long and arduous process of real estate transaction.
There was little or no real-time visibility of data in terms of project details, unit availability lists, buyer creditworthiness, and financing options, for example.
At the same time, buyers, real estate agents, real estate developers, bankers and lawyers were communicating manually.
This meant that a typical sales process could take 6-9 months, which was too long.
What MHub is now able to offer is a family of software and client services to facilitate end-to-end real estate transactions, connecting everyone involved in the process.
“At its core, MHub digitizes the entire manual process using different apps for different stakeholders to speed up and simplify, safely,” co-founder Jason Ding told Vulcan Post.
“Thanks to this holistic approach, we effectively reduced the process from 9 months to 1 month.”
They have numbers to show
Focused on the B2B market, its starting point for clients is real estate developers.
“Unlike traditional property listing portals which often have outdated or duplicate listings, developers use MHub as a single source of truth,” Jason said.
To date, he said the platform has nearly 700 projects for a total of 170,000 units.
“We have booked reservations for 64,000 units for a total sales and purchase contract (PPS) value of RM 93 billion.”
Over 80 developers of varying sizes who sell locally and globally have trusted MHub. Jason added, “We work with almost 90 law firms, 2,000 bankers and 4,000 real estate agents.”
On the other side, they have around 10,000 users.
One app was not enough
The whole problem of a long home buying process seems to have lingered on for years. Why then have the main actors involved not taken a lot of initiative to speed up the process themselves?
Jason replied, “It is true that while real estate is the largest asset class in the world, it is also one of the slowest to adopt technology. This is because there are many different parties involved in a highly regulated industry. “
“There have been many initiatives, but they have generally focused on just one aspect of the journey, when a holistic approach is needed.”
Therefore, instead of creating a single app, MHub created a suite of 10 apps to serve and connect the major players.
“In addition, we believe that the initiative should be led by a neutral party rather than by real estate developers or banks. This position allows for wide adoption so that everyone can focus only on their part of the value chain, ”added Jason.
There is no doubt that COVID-19 has also accelerated its adoption and that MHub’s own sales in the first half of 2020 have increased 3.5 times compared to the same period last year.
They have several exciting projects going on, but their main focus at the moment is to improve their suite of apps first for a better user experience.
Over the next 5 years, they want to become the standard for all real estate sales transactions in South East Asia. On their map are 5 SEA countries, starting with Indonesia and Thailand in Q2 2021.
Strategies for raising their winning formula
Reflecting on their journey so far, Jason must have credited MaGIC for playing a major role there.
2 years after starting MHub, they realized they still didn’t know much about building a scalable tech startup.
So when they learned that MaGIC was accepting applications for the Global Accelerator Program (GAP), they did not hesitate to apply.
“It helped us look at areas we didn’t even know we didn’t know. I’m especially happy to connect with other startups who were going through the same things that we were going through at different stages, ”said Jason.
Now graduates, they have had the opportunity to participate in several industry-related events, be speakers and mentor new entrepreneurs.
To continue growing, MHub is considering fundraising.
“We have a winning formula and we believe now is the time to develop ourselves in depth and better serve our user groups,” Jason told Vulcan Post.
They were recently backed by global startups VC 500 and will be running an ECF campaign on pitchIN to raise RM3 million.
This would be their second campaign on pitchIN after successfully increasing their target amount in 2019.
The funds would be used to improve MHub’s current applications, grow the team and promote their solutions.
- You can read more about MHub here.
- You can read more proptech articles here.
Featured Image Credit: Jason Ding, Co-Founder and Marketing Director of MHub
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