Malaysian startup HOMA2u raises US$1.5mil in pre-series A from Asia Fund X

• Aims to work with regional consultants to quantify supply chain carbon footprint
• Says it has repurposed US$4.2mil in overstock inventories to 8,000 homes

HOMA2u has raised US$1.5 million (RM7 million) in its Pre-Series A round. In a statement, the renovation and interior design materials marketplace said, this funding will be instrumental in supporting the company's carbon reduction tracking initiatives and its expansion beyond its home market.

Committed to sustainability as a core business driver, HOMA2u is reinforcing its environmental commitment to achieve significant, measurable results. The firm will collaborate with certified environmental consultants across the region to quantify the carbon footprint impact throughout the supply chain associated with repurposing overstock materials. 

Notably, each sale of overstock tiles saves approximately 16.42 kg of CO2 per m², preventing disposal and reducing the need for new tile production. The firm said its carbon reduction is meticulously quantified using established industry standards and scientific best practices. Additionally, it ensures thorough and transparent accounting of its carbon footprint, setting new industry benchmarks and issuing green certificates to the companies it works with.

HOMA2u claims that to date, it has repurposed over US$4.2 million (RM20 million) worth of overstock inventories to more than 8,000 homes. At the start of 2024, it set out a target to save 7.5m kg of carbon by the end of the year.

Pennie Lim, co-founder and CEO of HOMA2u, said, “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.” She added that the firm is committed to expanding its offerings outside of Malaysia and Singapore, specifically into high-growth regions such as Taiwan and Japan, where attitudes towards ESG construction are strikingly similar.

She added that the firm is committed to expanding its offerings outside of Malaysia and Singapore, specifically into high-growth regions such as Taiwan and Japan where attitudes towards ESG construction move in strikingly similar ways.

HOMA2u continues to push ahead with its regional expansion plans through its core online-to-offline marketplace offering of overstock and retail renovation and building materials, including innovative initiatives like its Yellow Boxes. It has begun servicing the Singapore market out of its Johor Bahru office and intends to quickly establish a physical presence within the country, materialising its pipeline of projects and collaborations with existing players in the built environment industry.

Quintessential to its expansion approach has been the build-up of the Pro+ ecosystem. With over 1000 interior designers, architects, suppliers, contractors, corporates and various other industry players, Pro+ serves as the platform for the community to congregate and benefit from HOMA2u’s curated perks and value-adding services centred around its own marketplace offerings.

James Yeoh, co-founder and chief strategy officer of HOMA2u, emphasised the importance of the underlying tech layer powering the value creation, adding that HOMA2U continues to refine its matching and recommendation systems between inventory and possible customer needs and wants. 

“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,” he said.

According to HOMA2u, it is well positioned as an early adopter to capitalise on increasing consumer scrutiny on sustainable building and renovation practices. Circular economy mindsets have gained cadence organically, ahead of regulator attention or duress, therefore, the company aims to consolidate the new ESG-focused landscape by agglomerating its industry networks, accumulated expertise, tech, and consumer trust.

Jeffrey Seah (pic), general partner at AFX, said, “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.” 

He added that the firm’s achievements reflect more so the mature business acumen of Lim and Yeoh, and the scale of the market opportunity at hand. 

“The company’s true competitive advantage comes from its foundations set via digital platform capabilities synergised with AI-powered data analytics - quintessential hallmarks of 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,” Seah said.