BlueDuck Founder and CEO Earnest Wong
Malaysia has a high rental deposit problem.
The hefty deposits, often exceeding a tenant’s monthly salary, restricts mobility and housing options, especially for the Middle 40 (M40) and Bottom 40 (B40) group and young professionals.
As per an estimate, the total rental deposits stuck in the market amount to a massive US$6 billion.
Earnest Wong and Edmund Chong saw an opportunity here to bring a change and create an impact.
“We saw the pain points of high rental deposits and decided to create a solution to free up cash flow for tenants while providing security for landlords,” says Wong.
Wong (CEO) founded BlueDuck with Chong in 2018. Wong has a strong background in insurance and management, while Chong (CTO) brings years of experience in systems and security.
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In a nutshell, BlueDuck is a fintech company providing financial services in Malaysia. It offers an easy rental solution for people looking for residential or commercial properties. It allows tenants to save cash upfront while enabling landlords and agents to rent out faster to a verified tenant.
The startup runs a zero-deposit programme, which allows tenants to pay a small annual subscription fee instead of traditional cash deposits, freeing up their cash flow. Upon verification, tenants receive a Blueduck Guarantee Certificate to reassure landlords.
The startup charges a tenant profiling fee on top of a small fee of 1 per cent of each rental transaction.
In addition, it charges an upfront one-time BD subscription fee charged yearly. The fee is 15-20 per cent of a 3-month guarantee, depending on the credit score and the BD scorecard and the purpose of renting (commercial/residential) of the tenant.
If any unforeseen incidents happen, Blueduck steps in to cover the cost on behalf of the tenant.
The programme has over 6,000 subscribers.
“In addition to the revenue generated from the zero-deposit programme’s subscription fee, we also derive income from our hassle-free rental collection services for landlords. Furthermore, our tenant profiling service aids landlords in making informed decisions, further adding value to their rental experience. These diversified revenue streams contribute to BlueDuck’s sustainable growth and financial success,” he explained.
Blueduck collaborates with over 1,000 landlords, realtors, and property developers in Malaysia.
While BlueDuck has made good progress, the company is aware of the challenges ahead. Creating widespread awareness about the zero-deposit programme is one.
“As we continue expanding, education becomes vital. To address this, we’re strategically partnering with developers and agents to reach a wider audience. Additionally, ensuring a seamless user experience and building trust are ongoing priorities. By leveraging advanced technology and focusing on excellent customer service, we’re committed to overcoming these challenges and furthering our mission,” says Wong.
BlueDuck has onboarded two VC firms to its cap table, along with experienced angel investors. He says their expertise and guidance have been invaluable in shaping its strategic direction and fueling growth.
In the short term, BlueDuck is focused on expanding its market presence by increasing its subscriber base and forging strategic partnerships with developers and real estate agencies.
“In the long term, our vision is to become a dominant player in the region, expanding beyond Malaysia and venturing into other ASEAN countries. We envision a future where Blueduck’s zero-deposit programme becomes a standard in the rental industry, empowering millions of tenants and landlords,” Wong concludes.
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Image Credit: BlueDuck
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