Food Market Hub (“FMH”), a cloud application platform founded in Malaysia that streamlines and automates back-end operations for F&B businesses, announced that it has raised US$8.5 million in an extended Series A+ round to finance further expansion and expedite growth. The round was brought about due to significant investor interest, arising from both FMH’s rapid growth as well as an accelerated push to digitalization in the F&B sector, thus bringing FMH’s total Series A funding to date to US$12.5 million.
The round was led by Southeast Asia-focused venture capital firm AC Ventures (through Malaysia’s Penjana Kapital fund), with participation from returning investors Go-Ventures, SIG and 500 Global, new investors East Ventures, Velocity Ventures, and Capital Code, as well as other angel investors. The funding will enable FMH to accelerate its expansion plans to Indonesia, penetrate deeper into the Malaysian market, and strengthen its presence in Singapore and Thailand by 2022.
“From our past experiences, it’s clear that our platform has helped many F&B businesses to successfully reduce their food cost and wastage. We’re also able to help them grow tremendously, especially during these tough times brought on by the pandemic. We have observed significantly increased demand for the solutions we provide as more businesses realize the value of technology in enabling them to achieve greater efficiency – especially in today’s ever-evolving business climate,” says Anthony See, CEO of Food Market Hub.
Established in 2017, the FMH platform automates the purchasing and inventory-tracking process, helping F&B businesses minimize wastage while managing food costs and inventory more efficiently.
Using FMH, F&B restaurants can easily order from their existing and new suppliers while automatically syncing data from Point-of-Sales (POS), inventory, and accounting systems for procurement decision-making on a single platform. Other integrations to third-party software are available, providing managers and owners with comprehensive data in real-time to manage their business efficiently.
Businesses have been forced to digitize to overcome challenges brought on by the COVID-19 pandemic. Since early 2020, FMH has experienced exponential growth, doubling its active users to 5,000 with an overall retention rate of 87 per cent. Its annualized total order value has grown more than 4x in the past 12 months to US$600 million in October 2021.
Its customers are highly engaged. The vast majority use the platform every other day to process 90% of all purchase transactions, showing just how essential FMH has become to their daily operations.
The company also boasts diverse customers, including café chains such as The Coffee Academics, large restaurant groups Putien and Din Tai Fung, and Yum Brands, which runs the KFC and Pizza Hut franchises. Food Market Hub has also recently expanded its offerings by launching its payments service in Malaysia, enabling F&B businesses to send invoices and collect payments seamlessly within the platform.
“Our mission is to support early-stage digital disruptors that will create value through their technological innovations, especially within the ASEAN region. Food Market Hub’s track record in Hong Kong, Singapore, Malaysia, and Taiwan has demonstrated strong potential to accelerate the transformation of F&B businesses. We look forward to their continued growth across the region and beyond,” said Ng Yi Chung, Partner at AC Ventures.
This year, FMH was one of three winners of the HLB Launchpad 2020 to collaborate with Hong Leong Bank on a pilot project and recently signed a Memorandum of Understanding (MoU) with Saladplate, an F&B and hospitality marketplace, to help local businesses digitally source F&B items.
It also partnered with the Malaysia Digital Economy Corporation (MDEC) in the virtual Go-eCommerce Expo 2021 to encourage local businesses to adopt eCommerce. This also marks the beginning of a partnership with Southeast Asia’s first Hospitality and Travel tech investor, Velocity Ventures to deepen FMH’s F&B industry foothold and expand into new markets quickly.
Beyond Malaysia, FMH already has a footprint in other Asian markets such as Hong Kong, Taiwan, Thailand, and Singapore. With its recent expansion into Indonesia, the company now boasts a presence in six countries. The company aims to continue supporting the digitalization of Southeast Asian businesses with deeper coverage of the region and an eye to enter new markets such as Vietnam. Over the next year, FMH plans to provide financing tools to support the recovery of regional F&B businesses.