HOMA Sdn Bhd (HOMA2u), a Malaysian marketplace for overstocked and new renovation and interior design materials, announced Friday that it has secured an additional $625,000 from Asia Fund X in its pre-series A funding round.

HOMA2u said in a statement that Asia Fund X, backed by MSW Ventures and anchored by Pavilion Capital, has joined Homa2u’s roster of investors.

The company existing backers including Quest Ventures Asia Fund II, Worldwide Management Solutions, and Qhazanah Sabah Berhad (QSB), the strategic investment arm of the Sabah state government.

With this addition, HOMA2u has successfully raised a total of $1.5 million in its Pre-Series A round.

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 said the firm is reinforcing its environmental commitment to achieve significant, measurable results.

To this end, HOMA2u 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 kilogram (kg) of carbon dioxide (CO2) per m², preventing disposal and reducing the need for new tile production.

The carbon reduction at HOMA2u is meticulously quantified using established industry standards and scientific best practices.

HOMA2u ensures a thorough and transparent accounting of its carbon footprint, setting new industry benchmarks and issuing green certificates to the companies that it is working with.

To date, HOMA2u has repurposed more than MYR 20 million ($4.24 million) worth of overstock inventories to more than 8,000 homes.

At the start of 2024, Homa set out a target to save 7.5 million kg of carbon by the end of the year.

“As HOMA2u commemorates its seven-year journey, it stands now at the precipice of a new era, driven by innovation and sustainability,

“Our vision for HOMA2u remains to redefine the business landscape for the built environment, but we are also cognizant of the sustainable impact we bring to the table,” said Pennie Lim, Co-Founder and Chief Executive Officer (CEO) of HOMA2u.

She also said the firm is committed to expanding HOMA2u’s offerings outside of Malaysia and Singapore, specifically into high-growth regions such as Taiwan and Japan where attitudes towards environmental, social, and governance (ESG) construction move in strikingly similar ways.

According to the statement, 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 via innovative initiatives like its Yellow Boxes.

It has since begun servicing the Singapore market out of its Johor Bahru office.

The company intends to quickly establish a physical presence within the country, and materialize its pipeline of projects and collaborations with existing players in the built environment industry.

It is noted that 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 centered around its own marketplace offerings.

James Yeoh, Co-Founder and Chief Strategy Officer (CSO) of HOMA2u, emphasized the importance of the underlying tech layer powering the value creation.

“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 added.

HOMA2u said the firm is well positioned as an early adopter to capitalize on increasing consumer scrutiny on sustainable building and renovation practices.

The firm also aims to consolidate the new ESG focused landscape through agglomerating its industry networks, accumulated expertise, tech and consumer trust.

“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,” said Jeffrey Seah, General Partner at AFX.

According to him, HOMA2u’s achievements reflect more so the mature business acumen of Pennie and James, and the scale of the market opportunity at hand.

“The company’s true competitive advantage comes from its foundations set via digital platform capabilities synergized with artificial intelligence (AI)-powered data analytics – quintessential hallmarks of digital economy revolution,

“We look to Pennie and James to scale HOMA2u across the region, bolstered by the wider business world’s maturing awareness of ESG,” he added.

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