AC Ventures Leads $8.5M Series A+ for Food Market Hub to Fuel Regional F&B Digitization

The Southeast Asian food and beverage (F&B) landscape is undergoing a massive digital transformation, and Food Market Hub (FMH) is right at the center of it. The Malaysian-based SaaS startup recently announced a successful $8.5 million Series A+ funding round, spearheaded by AC Ventures. This latest injection of capital brings FMH’s estimated valuation close to the $40 million mark, signaling strong investor confidence in the company's mission to streamline the often-chaotic back-end operations of the restaurant industry.

This funding round was facilitated through AC Ventures’ specialized Malaysian vehicle, the Penjana Kapital Fund. The round also attracted a prestigious group of new backers, including East Ventures, Velocity Ventures, Capital Code, and several strategic angel investors. Existing investors like Go-Ventures, SIG, and 500 Global also doubled down on their commitment, participating in this round to support FMH’s rapid trajectory. To date, across its Series A and A+ rounds, FMH has secured a total of $12.5 million, a testament to the accelerated demand for digital solutions in a post-pandemic world.

Expanding the Footprint Across Southeast Asia

With fresh capital in the bank, FMH is not sitting idle. The company has clear sights on regional dominance. A primary focus of this funding is to accelerate its expansion into the Indonesian market, while simultaneously deepening its presence in Malaysia. Furthermore, FMH aims to solidify its standing in Singapore and Thailand throughout 2022. By automating the procurement and inventory tracking process, FMH allows F&B businesses to move away from manual, error-prone systems toward a unified digital ecosystem.

Anthony See, the CEO of Food Market Hub, highlighted how the platform has become a lifeline for businesses. He noted that the technology helps F&B operators significantly reduce food costs and waste—two of the biggest pain points in the industry. According to See, the pandemic acted as a catalyst, forcing businesses to realize that traditional methods are no longer sustainable in an evolving business climate. The demand for efficiency isn't just a luxury anymore; it is a necessity for survival and growth.

Solving the Back-End Puzzle

Founded in 2017, FMH provides a comprehensive solution that integrates seamlessly with existing restaurant infrastructure. Instead of juggling multiple spreadsheets, restaurant owners can order from suppliers, track inventory, and sync data from Point-of-Sales (POS) and accounting systems all on one platform. This level of integration provides real-time, comprehensive data that empowers business owners to make informed decisions rather than relying on guesswork.

The growth metrics are staggering. Since early 2020, FMH has seen its active user base double to 5,000, maintaining an impressive 87% retention rate. This loyalty suggests that once a business adopts the platform, it becomes an integral part of their daily workflow. In fact, most users process about 90% of their purchase transactions through the platform. The total annual order value processed via FMH skyrocketed to $600 million as of October 2021, representing a fourfold increase in just twelve months.

Trusted by Global Giants and Local Heroes

Food Market Hub’s versatility is proven by its diverse client roster. The platform is used by everything from trendy cafe chains to massive global franchises. Household names such as KFC, Pizza Hut, Din Tai Fung, Yum Brands, and The Coffee Academics rely on FMH to keep their supply chains running smoothly. Beyond just software, FMH is evolving into a fintech player. The company recently launched payment services in Malaysia, allowing businesses to send invoices and collect payments directly within the app.

Ng Yi Chung, a Partner at AC Ventures, emphasized that FMH aligns perfectly with their mission to support technological disruption in the ASEAN region. He pointed out that FMH’s proven track record in markets like Hong Kong and Taiwan demonstrates a massive potential to transform the F&B sector at scale. Looking ahead, FMH plans to introduce financing tools in 2022 to further support the recovery and expansion of regional F&B businesses.

The Bigger Picture: Digitizing the MSME Sector

FMH’s entry into Indonesia is particularly timely. Within the AC Ventures portfolio, FMH joins other innovative solutions like Esensi Solusi Buana (ESB), which offers an all-in-one operational system for the culinary industry. This focus on the "back-office" is crucial for Indonesia's vast MSME sector. Recent data from the MSME Empowerment Report 2021 by DSInnovate shows that 83% of MSME players are now using digital startup services to overcome operational hurdles. As more founders enter this space with unique value propositions, the digital maturity of the region's food industry is set to reach new heights.