SEARCH

JomParking aims to expand Asian footprint, hopes to raise up to RM5m by Q3

12 Jul 2020 / 21:21 H.

PETALING JAYA: JomParking plans to raise up to RM5 million in its Series A round by the third quarter this year for its expansion to Bangladesh, Indonesia, Thailand and the Philippines in the next 18 months.

JomParkir Sdn Bhd CEO Muhamad Nasir Habizar (pix) said it is eyeing overseas expansion because local councils in Malaysia are slow in accepting the app, due to the long, tedious processes and the need to change local legislations that cause the delay.

“It takes about one to two years, on average, to close a deal,” he told SunBiz in an interview recently.

The company has secured an investor from South Korea for its expansion overseas, as there is high market potential for smart parking solutions.

“Going digital and cashless is making waves in Southeast Asian countries and it is an opportunity for us to expand our expertise for parking solutions,” Nasir said.

JomParking entered Saudi Arabia last October and secured a deal in Sri Lanka in February 2020, and will focus on expanding its footprint as it aims to hit 1 million users this year, from 400,000 users now, through numerous site expansion and marketing initiatives.

Malaysia is JomParking’s biggest market so far, and Nasir foresees that Indonesia will be its second biggest market.

In Malaysia, the home-grown parking app has four councils – Kuala Lumpur City Hall, Seremban City Council, Tawau Municipal Council, Tanah Merah District Council – five LRT station car parks and 20 other parking and valet sites in its network since launching in July 2015.

It plans to get at least five to 10 more councils, five to eight more LRT station car parks and 10 more buildings onboard the app in 2020.

“We’re actively engaging with partners, either parking operators, local councils and state governments to ensure that we can expand our services rapidly within Malaysia. At the same time, we’re also looking to expand our services outside Malaysia.”

Nasir said there are around 149 local councils in Malaysia and it is actively engaging with the stakeholders to promote its solution to them. He disclosed that Selangor, Kedah, Kelantan, Penang are expected to join the app this year.

“We will soon coexist in Selangor together with the state government’s Smart Selangor Parking app this year.”

Nasir explained that JomParking provides end-to-end solutions that benefit local councils in revenue increment; prevention of fund leaks, counterfeit coupons and high maintenance costs; and reduction in paper consumption.

Based on its projections, the parking business in Malaysia is worth RM1.8 billion a year, consisting of RM1.3 billion from off-street parking and RM500 million from street parking. The majority of JomParking’s transactions are derived from street parking. It clocked 5.5 million transactions in Malaysia last year.

Besides JomParking, JomParkir’s other products include JomValet (for valet parking operators), JomForce (for enforcers) and JomAgent (mobile ticket management system).

On competition from other apps, Nasir said JomParking is constantly enhancing its services and features to ensure user satisfaction and market recognition. “Competition is inevitable and it is good as it pushes us to do better while coexisting (with competitors) as we try to complement each other,” he said.

JomParking has been gaining more traction in light of the current Covid-19 pandemic as it allows users to pay for parking at a safe social distance.

“The time is now to go digital and cashless as we adhere to the government’s social distancing standard operating procedures,” said Nasir.

Besides bringing parking payment convenience to all drivers, JomParking has a marketplace in its app that sells car batteries and bus tickets. Nasir said it is targeting to introduce insurance renewal and car servicing by the third quarter this year to cater to an all-round experience for its users in relation to automobiles and mobility.

email blast