KUALA LUMPUR, 28 MAY 2015 – Two Malaysian technology entrepreneurs have raised further funding from the co-investment agreement signed between Cradle Fund Sdn Bhd and OSK Technology Ventures Sdn. Bhd a wholly owned subsidiary of OSK ventures International Berhad (“OSKVI”).
Education services provider, Sync and the team behind recruitment portal, MauKerja.my have each raised an approximately combined sum of RM1 mil, respectively, from both Cradle and OSKVI.
The funding will go toward supporting Sync’s School Communication Platform – a software for strategic and more efficient parent-teacher communications and the MauKerja.com, non-executive recruitment portal.
Both companies were introduced to Cradle’s co-investment partner earlier this year at PitchIt, a regular investor-entrepreneurs networking event organised by Cradle.
Sync founder, Zharif Sharif said most of the funds raised from Cradle and OSKVI will go towards sales and marketing efforts to boost revenue to support its expansion plan.
He said Sync plans to aggressively expand its technical and sales team as it prepares to reach the nationwide market by 2016.
“Currently, our efforts are focused on urban schools in the Klang Valley. By 2017, we’re looking to expand the greater Southeast-Asian region by leveraging with our partners, OSKVI and Cradle,” he said.
MauKerja.my founder, Ray Teng, said the funds will also go towards renewing its marketing efforts and hiring new talents to support its growth.
“We plan to expand our team and particularly in product development and marketing. We will continue to focus on the Malaysian market before expanding beyond our shores” Teng said.
OSKVI’s team said that the company is very proud to be part of Cradle’s co-investment initiative in supporting the growth and development of Malaysian technology companies.
“Sync provides a communication tool for parents to be more involved in their child’s education and MauKerja fills a gap in the recruitment industry for companies to hire in a targeted manner. Both have products that are scalable, useful and most importantly, helpful,” the team said.
Juliana Jan, Cradle vice-president of investment and relationship management said Cradle is proud to join in investing in start-ups and help boost the growth of Malaysian technology companies.
“By co-investing with partners like OSKVI, we’re opening up new funding options for capable and scalable start-ups to cultivate their ideas into globally competitive products and services,” she said.
Cradle and its 10 co-investment partners have raised a combined amount of RM56.7mil which will go into supporting the development and regional expansion plans of Malaysian technology entrepreneurs with highly potential and scalable ideas.
In all agreements, Cradle and its co-investment partners consent to one-ton one matching will deal where Cradle will fund up to RM500, 000 and its partners will invest the same amount or the equivalent in Singaporean dollars.
The co-investment initiative is to prepare Cradle for the gradual reduction of public funds towards funding early stage business.
By 2017, Cradle targets 70% of its allocated fund be channelled towards funding equity co-investment deals while the remaining 30% will be reserved for grant funding.
In its 10-year history, Cradle has funded almost 700 Malaysian technology start-ups through its CIP Catalyst product development grant and its CIP500 product commercialisation grant.
Funded companies include taxi booking mobile application, MyTeksi, financial planning website Intelligent Money, infographic design web tool, Piktochart and hypoglycaemic-shock alert bracelet Hypoband. It also has a commercialisation rate of 58%, deemed to be the highest among all government grant agencies.