Malaysian startup CatchThatBus raises money in Singapore
- Cradle Fund recipient objectives for RM1bil M'sia-Singapore intercity bus marketplace
- Founders offer recommendation on whilst is excellent time to engage with VCs
IT won't be focused on a attractive marketplace opportunity, however CatchThatBus has proven that there are opportunities in everyday life studies – if you only look difficult sufficient or just open your eyes to the float of life round you.
Founders Ashwin Jeyapalasingam and Viren Doshi decided to address the inconvenience of purchasing bus tickets via constructing an online bus ticketing platform, with a focal point on cellular. This changed into returned in June 2011.
The concept did no longer come to Viren in Malaysia, but in advance in India where he became running with an NGO (non-governmental employer). Prior to this he had a stint with a multinational and changed into assisting out inside the family commercial enterprise. Ashwin turned into an associate director in the consulting arm at PricewaterhouseCoopers earlier than leaving to be the co-founder and COO.
In September 2013, after they had been first featured on DNA having simply gone stay with three bus operators, they have been even assured of selling ancillary offerings too, going thus far as to declare their version as being “the AirAsia version.”
Currently with 11 bus operators the usage of their ticketing platform, the commercial enterprise model is commission primarily based with actual fee relying on price of price tag and phrases agreed with every operator. Tickets are bought at the equal fee as the counter with out a additional expenses incurred by using passengers shopping for thru CatchThatBus.
On May 28, they hit a major milestone with the declaration that they'd raised an undisclosed sum from traders – massive validation that there may be indeed a US$310-million (RM1-billion) market opportunity right here - and that the startup they released almost three years in the past is nicely-located to capture that possibility.
While the duo decline to reveal the quantity raised “for strategic motives,” it is believed that CatchThatBus raised a low seven-digit amount in Singapore dollars.
The investors encompass angels and a Singapore-based project fund, Jungle Ventures, which already counts Malaysia’s iMoney as among its investee companies. Another investor is Singapore’s National Research Foundation (NRF), a department inside the Prime Minister’s office.
“We were the primary committed bus ticketing app within the South-East Asian vicinity for Android telephones,” said Viren, the cofounder and chief executive officer, with a few pleasure.
That declare is unlikely to were the cause why they acquired funding. If it become, they might no longer have had to wade through 30 buyers before succeeding with Jungle Ventures and NRF.
Rather it is marketplace traction, monthly sales is in five figures and "growing gradually", and investor self assurance that Viren and Ashwin can execute the sport plan, which incorporates local growth in South-East Asia.
Already with a presence in Malaysia and Singapore, the duo plan to awareness this 12 months on using the brand new funds for advertising and marketing and advertising and marketing, as well as extra product improvement and to extend the agency’s sales channels. Next year will see the frenzy into a 3rd us of a in South-East Asia.
Amit Anand, companion at Jungle Ventures, is excited over the opportunities. “After travelmob, it's miles a privilege to be related to another interesting startup that is solving a tough hassle in Asia Pacific.
“The CatchThatBus crew has added the entire intercity section (over 500 locations) in Malaysia and Singapore online, and we're very excited about the possibilities for the company,” he stated.
Digital News Asia (DNA) posed some inquiries to the duo:
DNA: How had been you able to sustain the task until that second when sales started out coming in from Sept 2013?
Ashwin (p.c): We had an initial RM150,000 grant via the CIP Catalyst programme from Cradle Fund Sdn Bhd, in addition to additional money that we crafted from offline constitution income, aside from dipping into our financial savings.
DNA: Did you ever think about giving up while things have been at their lowest? After all, you probably did start this adventure in June 2011.
Ashwin: We in the beginning started as a team of three cofounders, however one of us needed to go away because of financial commitments. Thankfully, Viren and I were able to hold the adventure together. Cash glide become a trouble occasionally as nicely, and we each needed to borrow from friends and own family to hold things going. But we nonetheless felt the potential outweighed the risks.
DNA: How did you maintain costs as tight as possible?
Ashwin: We tried to keep our overheads low and burn charge small. A lot of our initial work became outsourced to advocated contractors, and we certainly prioritised the work that we did to those who answered the easy question: How will this deliver in extra cash to the company?
If it failed to add good sized price or sales, we moved it decrease down within the priority list.
For instance, our cellular app now could be out for Android simplest. We considered investing in developing a release for the iOS as properly, but thinking about nearly 80% of our market is Android-based, we've decided to driven it to a later – a completely painful selection for Viren particularly, who is a diehard Apple fanboy.
DNA: How many VCs did you speak to before getting Jungle Ventures in?
Ashwin: We spoke to quite a few VCs (challenge capitalists), angel traders and high net worth people in Malaysia and Singapore, and participated in numerous pitching classes. Between 15 to 30 VCs in all.
DNA: Based on your reports, what would your advice be to your fellow marketers on attractive VCs?
Ashwin: Engage early whilst you do not need the money so that you're capable of make the deal that virtually sits without difficulty with you. The last component you want to do is to go into an agreement grudgingly, as it will likely bitter the relationship fast.
Thankfully we're very glad with going with Jungle. The surroundings they have got supplied us, and introductions to mentors and other startups in their portfolio have been precious.
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