MyTeksi, the Malaysia-based operator of a taxi ordering app, is reportedly looking to raise $10m in the form of a loan or convertible instrument, according to sources, which said the investor could be the Malaysia-based CIMB Investment Bank, The Star newspaper has reported.
The company is already backed by the corporate venturing unit of Singaore Temasek Holdings and venture capital firm Vertex Venture Capital.
On the demand side, most taxi passengers cannot get taxis when needed, and are constantly concerned about their personal safety, according to MyTeksi, which acts as Malaysia’s version of internationally used taxi service app, MyTaxi.
MyTeksi has caught the attention of Vertex because of the company’s regional approach with five other markes on the go including Thailand, Singapore, the Philippines and Vietnam.
From the supply side, taxi drivers in Malaysia struggle to earn a living and spend between 60% and 75% of their working day idle. Even though both supply and demand for taxis are high, the poor matching process of the existing CB Radio dispatch system leads to significant inefficiencies, said the startup.
According to the report, the company is expected to see a couple more funding rounds if a trade sale or public listing are not already in the mix when it decides to look for more capital in future.