Turning a Profit: SPEEDHOME’s Journey to IPO Readiness

From simplifying rental processes to introducing zero-deposit models and insurance protections, Wong Whei Meng, Founder and CEO of Speedhome, has focused on solving the pain points of landlords and tenants alike. With innovations like tenant screenings and integrated insurance protections, Speedhome is positioning itself as a comprehensive property management platform.

Breaking its loss-making streak, Speedhome is on track to achieve profitability this year. The company reported a 75% on-year increase in gross profit to just under RM5 million as of September 2024, with a net profit of RM1 million and EBITDA of RM2 million. Now, as it gears up for regional expansion and an IPO by 2027/2028, Speedhome is launching its fourth equity crowdfunding (ECF) round, targeting RM10 million at a valuation of RM114 million.

In this episode of Open for Business, we explore Speedhome’s journey, its innovative business model, and its bold plans for scaling regionally—all while staying laser-focused on profitability and customer retention.

Here are some key highlights from the conversation:

- Origins: Speedhome was born out of Wong’s personal frustrations as a landlord, inspiring him to build a platform that empowers landlords with control and simplifies processes for tenants.

- Insurance Innovation: SPEEDHOME introduced rental guarantees, eviction support, and other insurance protections, significantly enhancing landlord confidence.

- Business Model: Speedhome generates revenue through insurance commissions, tenancy fees, and a subscription model incentivising good tenant behavior.

- Key Milestones: Set to achieve full year profitability in 2024, Speedhome generated RM10 million in revenue as of September, with projections to close the year at RM14 million.

- Social Impact: By mandating tenant credit checks and offering zero-deposit options, Speedhome has tackled biases in the rental market and improved landlord-tenant relationships.

- Market Opportunity: With just 1% market penetration in the RM7.9 billion Klang Valley rental market, Speedhome plans to expand into Johor, Penang, and Melaka.

- New Market Opportunity: Speedhome aims to integrate software solutions for non-transacted properties, making property management seamless across the ecosystem.

- IPO Preparation: The company’s fourth equity crowdfunding round targets RM10 million to fund regional expansion, enhance its platform, and tap into untapped markets, all aimed at IPO readiness by 2027–2028.