Malaysian startup Kaodim to shut down on July 1, cites rising costs among challenges

Choong and Jeffri Cheong founded Kaodim in 2014. — RICKY LAI/The Star

Kaodim has announced that its company and all affiliate platforms will no longer be operational from July 1, 2022.

Co-founder and CEO Choong Fui-Yu cited the effects of the prolonged Covid-19 lockdown, which led to issues such as operational disruptions, labour shortages and higher running costs on the service provider side, as having impacted its business and quality of services.

“More recently, these challenges have compounded further with inflation and rising costs. This has affected customer demand, service provider fulfilment, margins and in turn, our earnings,” Choong said in a note posted on the Kaodim website.

Choong added the challenges has led the company to feel that it can “no longer grow the business meaningfully”.

He said employees will be provided with notice and severance payments.

Kaodim started out as an online platform for users to find and book services ranging from plumbers, electricians, and movers to photographers in 2014. Then the company released the Kaodim - Hire Services app in the following year.

In 2016, the company announced that it had raised US$4mil (RM17.57mil) through Series A financing led by Jakarta-based Venturra Capital with Beenext, 500 Startups and East Ventures. At the time, the company boasted that it was offering 85 types of services on its platform.

The company had also expanded its services to Singapore, Indonesia and Philippines.

According to its FAQ, the company said all accounts and data will be erased after June 30. For any bookings made after June 30, customers are required to make payment in cash directly to the service provider.

The FAQ was provided for both vendors and customers to learn about the next steps after the company announced that it is shutting down.