Chief operating officer Dr Nik Rashidi has announced that due to an encouraging response from the public, PasarBorong.com, Malaysia’s first grocery store online, is expanding its operations with an investment of US$1.31m. The money will be raised through bank loans and venture capital funding.
The company is relatively young, having only launched operations last July, but its venture into convenience food is expected to generate sales of RM2m in its first year and it is already seeking to expand its geographical coverage and logistics. Currently, the company has around 200 customers registered and 80% of these are first time online shoppers.
Prices at PasarBorong.com are about 10% lower than those in supermarkets, and its popularity is leading Rashidi to predict that during the second year of operations, “sales will increase substantially to a targeted figure of RM7m to RM10m.” Increasing sales even further implies expanding logistical coverage to the highly populated Subang Jaya area, followed by Ampang.