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HAAS ASIA

Why buy when you can Subscribe!

SUMMARY VIDEO

COMPANY DETAILS

SUMMARY

Our story started back in 1999 when we are still refurbishing and selling preloved computers. By that time, we believed that computers with affordable prices had huge potential and it was just as I predicted, our business was a great success with 12 branches in Malaysia.

However, our business was severely affected after the market computer brand started to launch affordable laptops (which we could buy at around RM1500). We had no choice but to shrink our business but we are very fortunate that we participated in the “Microsoft Unlimited Potential Program” which was under Microsoft Corporation of United States in 2016  for  providing  laptops  at  an  affordable  price  of  RM60  per  month  to  100  rural households.

Since then, we have adopted Haas (Hardware-as-a-Service), a service provision model for hardware that is defined differently in managed services and grid computing contexts. In managed services, HaaS is similar to licensing. In grid computing, HaaS is a pay-as-you-go solution as our core business model.

Today, our business has transformed from refurbishing/ selling preloved computers to a subscription model, which was such a blessing to a lot of smart SMEs and consumers.

PROBLEM

Over 20 years of experience, we noticed that a lot of customers faced cha;;enges when it came to laptop and computer aftercare.

The hidden costs and unstructured servicing and maintenance methods can burden customers both financially and mentally which adequately becomes a criteria to be considered when people purchase a new laptop or computer.

Moreover, a lot of corporations preferred leasing hardware instead of purchasing it in bulk so that they can swap their software for the latest that is available in the market.

Unfortunately, most of the computer leasing companies only catered to corporates and supplied  high-range  customers.  There  was  nothing  to  cater  for  start-ups,  small  and medium enterprise (SMEs) and those underserved in the low to middle income group.

People who can afford purchasing computers in bulk are those who can send a purchase order and can get 20 computers just like that. But for start-ups and smaller companies, they have no choice but to pay by cash or use a credit card. Another thing is that these people don’t get back-end support after purchasing the computers and will be stuck with a hefty bill if it requires repairs.

SOLUTION

Smart Rental intends to build an ecosystem that caters to those who are underserved, which include students and those in low to mid-range income groups.

Smart Rental provides computer and laptop subscription service that allows anyone to have a laptop with the added back-end service during their contract period.

Imagine a student buying a  secondhand  laptop  to  save  money.  Two  months in, the screen spoils, which is expensive to repair. But with us, there will be zero repair cost as it is under our care. This service is what we want to offer and make it affordable for everybody.

PRODUCT

The  subscription  contract  is  typically  either  12  months  or 24 months, with a monthly payment ranging between RM48 to RM128 per month and that the company will collect a three-month advance rental.

During this contractual period, the cost of labor and parts for computer or laptop repairs is covered by Smart Rental. After 24 months, customers will have the option to trade in their  device  for something new. Here, capital expenditure is converted to operational expenditure (opex). The computers and laptops will depreciate over three to five years and billing a leased computer as opex saves the companies money.

We’re not doing a credit check on those who want to partake in our leasing package, so anyone will be able to afford a laptop or computer in their home or office.

Based on our 12-month traction, 90% of these subscriptions ended up paying monthly fees consistently when they could have just run off with the computers without paying. We found out that individuals are not that bad, which is why we’re offering our packages without any prior credit check.

There are a lot of good people and some bad apples. So let’s say out of 1,000 people, 10 of them are bad, we can accept that loss. We don’t want to discriminate against the larger population just because of the bad apples.

TRACTION

In 2021, we generated RM 2.9 millions of revenue with 1,301 active subscription contracts.

However in 2022, we had already achieved RM 4.2 millions of revenue in just 9 months. In 2021,  we  only had around 150 new subscriptions per month but since 2022, we have doubled our new subscription to 300 units per month.

Since we transformed our business model, We have served more than 300 SMEs in Klang Valley through 10 different sales channels from online to offline.

Smart  Rental  had  accumulated  a  total  of  5,000+  active  contract  subscriptions.  Just imagine  all  of  these  subscriptions  are  RM  87  per  month,  this 5,000 subscription can generate up to RM 10 millions of income in 24 months contract period and not to mention we had achieved a 97% retention rate.

CUSTOMERS

70% of Smart Rental subscribers come from Small and Medium Enterprise (SMEs). Most of the SMEs' subscriptions are 24 months or 36 months which contribute the most to our revenue.

From the record, our current subscriber retention rate is at 97% result from our good service and relationship management with our subscribers.

The composition of our subscriber base is as below:-

  1. Small and Medium Enterprise: ~70%

  2. Low to Medium Income: ~20%

  3. Student: ~10%

BUSINESS MODEL

Smart Rental’s subscribers could also enjoy the following benefits apart from ordering laptops  with  a  preferential price:  free  replacement,  free  service,  free  warranty,  free maintenance, free upgrade (terms and conditions apply), and free shipping! Furthermore, subscribing is more flexible than purchasing for companies as they can end the contract or buy out the laptops at any time based on the current situation.

We are also developing a new project: a digital technician appointment platform. If there is  a  problem  with  the  laptop,  it  could  be  repaired  quickly  by  simply  booking  an appointment with our IT technician through the platform instead of going to a computer repair  shop  and  waiting  for  several  days  to  get  the  laptop  back.  This  project  fully corresponds to the fast-paced life of the 21st century, because the cost of time is also an invisible expense that companies have to deal with.

MARKET

Malaysia  is  one  of  the  most  attractive  markets  with  a  2020  GDP  of  RM1.57  trillion contributed by 32.7 million people (Source: Department of Statistics Malaysia). 77% of Malaysians own a computer and unexpectedly, we spend around 8 hours every day using the internet  (Source: Department of Statistics Malaysia).

Moreover, there are approximately 1.2 million SMEs in Malaysia with a total workforce of 15 million people (Source: SME Corp Malaysia).

The underpenetrated HaaS industry in Malaysia is a very potential market waiting to be explored. Almost every single person in Malaysia owns a smartphone and there are over 5 millions of tablet users.

COMPETITORS

Smart Rental peers generally serve only large enterprises or government agencies with large budgets. Smart Rental fills the gap in the market. Smart Rental service not only meets the needs of people from all walks of life but also provides services for enterprises of all sizes. As people are forced to stay at home because of the pandemic, the surge in computer  demand  in  2020  (12.9  percent growth rate) continues into 2021 (estimated growth rate of 18.2 percent)*, and our market positioning is just right for the huge B40 consumer and SMEs that want to get electronic products at more affordable prices.

FUNDING

At present, the only issue limiting our growth is a lack of capital, so we hope to raise RM10 million in this ECF exercise at a pre-money valuation of RM60 million to achieve our goal of serving 28,000 subscriptions by year 2024.

USAGE OF FUND

Smart Rental had achieved breakeven this year and we are not looking for funds to support our operations. All of the funds will be allocated to further expand our business and capture more market share.

  • 55% of the funds raised will be used to increase our inventory by purchasing more refurbished PCs and notebooks.

  • 25% will be used for marketing in both online and offline to boost the number of subscribers.

  • 15% will be allocated for the technology department to upgrade our software, website and maintain our server.

  • The remaining 5% will be used for branding to to promote “Why buy when you can subscribe” inspiration.

FINANCIAL FORECAST

Smart Rental aimed to achieve a total of ~35,000 active subscriptions by the year of 2025 to make a revenue of more than RM 30 million. We foresee a loss in the year 2023 due to the new injection of capital that will be mainly spent to purchase computers in order to expand our market share.

VISION & MISSION

Previous Fundraising Campaign

We ran our first ECF campaign on Mystartr in the year of 2020 and successfully raised RM1,330,000 through ordinary shares. By that time, our company only valued at RM8.5 millions.

Our second ECF on Mystartr was a big success. We successfully raised RM 4,607,625 which is 460% of our target.

THE COMPANY

Company Name: HAAS Asia Sdn. Bhd.

Registration No.: 202101010354 (1410653-W)

Incorporation Date: 23/03/2021

FOUNDERS

Joshua Chin

Over 25 years in the IT industry. Expert in Systems Integrator, IT Refurbish industry and Rental Expert.

Guru in start-up and business model innovation. Coming from a LCCI Diploma Background, well versed with accounting and most expert in sales and marketing innovation.

Current expertise on funding, capital roadmap and talent management.

Served as C level in various international companies and sits on various companies as advisor.

Co-founder of Linear Channel Sdn Bhd since 1999, creator of buynow.com.my and smartrental.asia.

TEAM

PRESS
  1. Official Website: https://smartrental.asia/main/

  2. Facebook: https://www.facebook.com/SmartRental.JustRentIt

  3. The Edge Market - Laptop and computer rental solution for lower income earners

  4. Yahoo Finance - Smart Rental - Smart Devices Subscription Provider Receives 1.1 Million USD in Equity Crowdfunding

  5. Sunshine Kelly - SmartRental Laptop & Computer Rental Solution

  6. Top 10 Malaysia - A MASTER IN THE WORLD OF TECH

  7. Confexhub - Smart Rental – Smart Devices Subscription Provider Receives 1.1 Million USD in Equity Crowdfunding

  8. Golden Bull Award

  9. Lang International Corporate Titan Awards 2020

  10. Consumer Choice Award 2020/2021

  11. Malaysia Book of Records

  12. Best Intelligent Figures 2021

 

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