MTDC invests in Series A funding for KLezcar

As the strategic enabler, MTDC seeks to forge closer IR4.0 repeated tie-ups with homegrown companies like KLezcar to assist growth and accelerate business

by HARIZAH KAMEL / pic by RAZAK GHAZALI

THE Malaysian Technology Development Corp (MTDC) has invested RM6.2 million in car rental company KLezcar Travel & Tours Sdn Bhd through its Series A investment round.

As the strategic enabler, MTDC seeks to forge closer Industry 4.0 repeated tie-ups with homegrown companies like KLezcar to assist their growth and accelerate their business, CEO Datuk Norhalim Yunus said.

“One of the things that we like about this project is they (KLezcar) also develop other entrepreneurs. We like their business model because they partner small car rental companies instead of buying and renting out their own fleet.

“This will indirectly help to develop entrepreneurship in the country,” he said in a press conference after signing the Series A funding in Kuala Lumpur (KL) last Friday.

With MTDC’s support and plans to add more rounds of funding in the pipeline, KLezcar intends to kick start its expansion across South-East Asia from 2021 onwards.

KLezcar CEO Amad Fuad Zainal Abidin said the brand targets to generate RM21 million in sales and gain 210 car rental partners for this year, compared to RM7.5 million in sales with 90 partners last year.

“In January this year, we launched a newly enhanced partnership programme which is opened to all car rental operators. We managed to add 64 companies in a month and a half, so to reach 210 is possible,” he said.

Amad Fuad said they are still eyeing on the local market, providing services to solve public transportation problems in both urban and non-urban areas.

The brand believes that it is an advantage to provide service in many locations, especially in places deemed implausible for it to survive namely in Jeli (Kelantan), Baling (Kedah) and Gerik (Perak).

From the beginning, self-funded KLezcar wanted to launch a network of mobility which is convenient for customers and to elevate independent car rental operators to become its partners.

“Using a typical car rental business model is a bit difficult as we need a lot of cars and large coverage areas, which is why we opened up to other car rental companies to join us under one brand to achieve our goal of delivering services across Malaysia,” he said.

Leveraging its strong technical background, KLezcar introduced a holistic car rental management system, as well as Internet of Things devices for GPS tracking and car locking/unlocking which are built in-house.

“For instance, it would be impossible for car rental entrepreneurs with only five carriages to have the website, device and system that we have. This is where we need the entrepreneurs to join us and have all the systems and technologies,” added Amad Fuad.

KLezcar aims to significantly improve customers’ journey and experience which involve innovating further on the latest technology developed and installed into the cars.

This significantly improves customer experience by reducing waiting time with real-time booking, eliminating double-bookings, efficient documentation, emergency assistance nationwide and provision of replacement cars.

Additionally, the brand is open to individuals who own more than one car to join its platform and generate income.

Sharing economy is something that they will expand in the future, Amad Fuad said.

Customers can book KLezcar services through the company’s website and or app. It also has a 24-hour call centre.

Meanwhile, business continues as usual as demand for its service has hardly abated despite the current Covid-19 crisis.

As of this month, KLezcar has opened 134 branches nationwide with a fleet of 1,838 cars consisting of 40 different models ranging from compact to luxury cars.