Malaysian point of sale (POS) startup StoreHub has raised $850,000 in seed funding, led by an undisclosed private investors from a China venture capital firm, with participation from 500 Startups as well as investors in Singapore and Malaysia.
The funding will go into to accelerate their regional growth plans, which include expanding further within Southeast Asia.
StoreHub co-founder and chieftain Fong Wai Hong told DEALSTREETASIA that the China funding came from private investors in a mid-sized VC, running a $100 million fund.
“This deal is the first in Southeast Asia for the China VC, but we have known them for a while because of our China connections and co-founder Congyu,” Fong said. StoreHub’s other co-founder, Li Congyu is based in Shanghai.
The funding from Singapore came from private investors while and StoreHub’s Malaysian private investors are linked to a private equity firm.
“We’ve been cash-flow positive as early as September 2015, so we’re confident in the model and direction that the company has taken. The money we raised is primarily for doing more of what we’re already doing, but also scaling our product team and expansion into Southeast Asia more aggressively. We’re already in the Philippines, Thailand and Indonesia,” Fong said.
With over 850 retail stores paying a monthly subscription, StoreHub’s growth since its launch in April 2014 is a testament to the company’s commitment to building a world class product and provide kick ass customer service.
Featuring full fledged inventory management, customer relationship management and a cloud-based iPad POS, StoreHub’s cloud infrastructure enables small & medium enterprises such as retailers, boutiques, grocery stores and cafes to manage their businesses from anywhere with an internet connection for a low monthly fee starting at $39 per month.
“We bootstrapped the company in our first 12 months after which we got a small investment from an angel investor as well as the CIP 500 grant from Malaysia’s Cradle Fund. This initial funding allowed us to grow our product quickly and we’ve been cashflow positive and profitable since late 2015,” Fong added.
Last month, StoreHub announced a partnership with Malaysia-listed payments giant GHL Systems Bhd to deliver a fully integrated mPOS credit card terminal and iPad POS solution.
The solution simplifies the process for businesses to accept credit card payments and manage business operations both on the same platform.
StoreHub counts former chief executive officer at MaGIC, Cheryl Yeoh as one of its advisors. Yeoh commented that StoreHub’s model, growth and strategy will scale across the region in a huge way.
“The founders have strong vision and execution experience and I believe that they are the right people at the right time to build this,” she said.
With customers in Malaysia, Philippines, Thailand and Indonesia, StoreHub’s regional expansion strategy will see a massive boost from this round of funding.
500 Startups managing partner Khailee Ng said: “This is the first POS company in Southeast Asia that 500 Startups has invested in after reviewing many. StoreHub’s traction in the region is most impressive and we’re excited to see what they will accomplish in the next 12 months”.