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BUSINESS

MTDC invests RM6.2 mln in KLezcar for Series A Investment Round

13/03/2020 04:39 PM

KUALA LUMPUR, March 13 -- Khazanah Nasional Bhd's wholly-owned subsidiary, Malaysian Technology Development Corporation (MTDC), has invested RM6.2 million in car rental company KLezcar Travel & Tours Sdn Bhd.

MTDC chief executive officer (CEO) Datuk Norhalim Yunus said the company has plans to add more rounds of funding for KLezcar in the future, especially as the company is gearing to penetrate the Southeast Asian market from 2021 onwards.

"We like KLezcar's business model because they partner with small car rental companies instead of buying and renting out their own fleet. This will indirectly help to develop entrepreneurship in the country.

"Small car rental companies normally do not have the means to invest in technology, so by partnering with KLezcar, it will take care of the system, marketing, payment and other back-end processes," he told a press conference after announcing the Series A Investment Round here today. 

Established in 2014, KLezcar has a nationwide network of 134 of its own and partner branches, offering over 1,838 cars.

Customers can book the services easily through the company’s website, www.klezcar.com, or by downloading the klezcar app.

Meanwhile, KLezcar CEO Amad Fuad Zainal Abidin said the company also plans to expand its list of services to include carwash and oil changing by partnering with business operators.

Leveraging on their strong technical background, KLezcar introduced a holistic car rental management system as well as the lnternet-of-Things devices for Global Positioning System (GPS)-tracking and car locking/unlocking system which were built in-house.

With the systems in place, the company managed to massively improve customer experience by reducing waiting time with real-time booking, eliminating double-bookings, providing more efficient documentation and emergency assistance nationwide as well as providing replacement cars. 

"Last year, with 90 partners, we managed to rake in total sales of RM7.5 million.

“This year, we plan to extend our network in terms of coverage and fleet size by onboarding 210 new partners with a newly enhanced KLezcar Partner Programme and generate RM21 million in sales," Ahmad Fuad added.

-- BERNAMA

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