M’sian Startup Providing Rental Management Software
The culture of renting out a good or service is arguably more popular in Western countries than in Malaysia, as shared commerce is not yet as widely accepted by the older generations here.
When Huzaifah, Emir, and Hazim were studying abroad in Canada, they discovered that anyone could rent almost anything there.
“Everything was accessible. And since then, I’ve been thinking of creating a rental market in Malaysia, ”Huzaifah, the founder of Pinjam.co, told Vulcan Post.
Currently, the Pinjam.co team includes the trio as well as 4 other teammates who have previously worked with Dahmakan, Petronas and Top Glove.
Rotate from a simple rental of “Yellow Pages”
When Pinjam.co started at the end of 2019, it was actually known as Pinjamla which was just a platform for merchants to showcase their products like books, cameras, etc. . Their goal at the time was simply to increase the number of ads in the market. .
A few months after starting the business, however, their merchants started approaching them about the possibility of doing more with their platform, such as managing merchant customers, tracking products, delivering rental subscriptions, in-store reservations, etc.
“The rental industry in Malaysia is underserved as most of the similar platforms mainly focus on the e-commerce industry,” Huzaifah realized from feedback he received from merchants in Pinjamla.
Therefore, in October 2020, Pinjamla changed their name to Pinjam.co and added rental software to their existing rental market platform to fill in the gaps their merchants were facing.
Not quite a point of sale system
From an outsider’s point of view, their software is quite similar to a point of sale system, as some of the main features of the point of sale system include inventory, employee and customer relationship management as discussed in this StoreHub article.
The Pinjam.co team shared that apart from these things, some things in their software have that a point of sale system does not include a product tracking and fraud prevention system.
Through their product tracking system, the movement of a product, such as where and when it is collected and returned, whether through U-pick or delivery partners, and which member of the company staff handed over and received the product, can all be tracked.
As for their fraud prevention system, their software includes customer ID verification and a security deposit that companies can choose to include in their reservation.
Their other features similar to a point of sale system include a reservation management system and an inventory management system.
So far, they haven’t been able to identify their local competitors, and from what I’ve found, most rental management systems in the country are more geared towards rental property.
However, their international competitors include Rentle.io (Finland), Reservety (Romania) and Ezrentrout (United States).
If you’re a customer interested in booking with one of their merchants, you can choose to pay your rental fees by the hour, by the day, or even through a subscription.
Solving the problem of double booking at merchants
“Before using Pinjam.co, most of our merchants had double booking issues because everything was handled manually,” said Huzaifah, which they were able to resolve with their booking management system.
In addition to avoiding future double bookings, their merchants can also block the availability of these products for a period of time if they need them for personal use or for maintenance.
Currently, over 70 merchants are using their software and platform. Their merchants currently pay a transaction fee of 2.5% of the reservation fee + RM 1.00 per reservation.
Since they pivoted in October 2020, their highest monthly income was over RM35k, which happened in December 2020.
We had to convince and educate
When they started, Huzaifah shared that while people were excited about their idea, they couldn’t get many users to stay because they only had a few features like online payment and a rental system. daily.
This prompted them to add more features to stand out as a rental management system, and they’ve been able to secure more active users since then.
“Rental software is not as common as e-commerce and point-of-sale systems in Malaysia, so it took a while for us to educate rental companies on how to run their business with us,” Huzaifah said. at Vulcan Post.
Fortunately, they have managed to partner with the Ministry of Entrepreneurship and Cooperative Development (MEDAC) and the Malaysian Technological Development Corporation (MTDC) as a solution provider for their SME digitization programs, which has greatly helped them gain early adopters and confidence.
Since many of their rental businesses are active, Pinjam.co and the rental industry as a whole have felt the impact of the pandemic. However, they managed to get by thanks to grants obtained from MTDC as well as SUPERB TERAJU 2019.
- You can read more about Pinjam.co here.
- You can read more about the other startups we’ve written here.
Featured Image Credit: Huzaifah Sulaiman, Founder of Pinjam.co
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