Deal Details
  • Deal Type Startup Capital
  • Status Active
  • Fundraising Goal SGD 1,000,000
  • Fund Raised SGD 500,000
  • Headquarters Singapore
  • Fundraiser Profile View

Investment highlights

Update

In response to the developing demand for this deal, we are pleased to share that this campaign has been extended to Tuesday, 23 April 2019, which will be the end of the campaign as well


Capitalising on a great market opportunity

Malaysia coffee market value grew at a CAGR (2013 – 2018) of 7.2% from USD1.3bn in 2013 to USD1.8bn in 2018; driven by rising urbanisation, increasing disposable income and growing coffee-drinking culture


Unique coffee blends

Combining different types of coffee beans such as Columbia Supreme Arabica, Brazil Santos Arabica, and Rwanda Arabica to find suitable blends for their clients


Strong customer base

Supplies to >25 customers including Kettle Bell, Little Salty Cafe, and Union Chain Group, with plans to target more small independent cafes and restaurants


Robust traction

Achieved an average EBITDA margin of c.28% in the first year of operation; forecasted to generate revenue of MYR450k, with EBITDA of c.29% in 2019


Capable management team

Led by a serial entrepreneur and investor with >18 years of experience in entrepreneurship, investing, Food & Beverage (“F&B”) and corporate finance


Use of proceeds

Repayment of advances to Union Chain Group for outlet expansion

Working capital requirements

Background

Established in 2018 by serial entrepreneur, Tham Lih Chung, Union Roastery is a coffee roaster located in Kuala Lumpur, Malaysia

Roasts unique coffee blends by combining beans of different origins, varieties, and densities to strike an overall balance and complexity of flavours to suit the varied taste of clients

Sources a myriad of quality coffee beans, including Brazil Santos Arabica, Colombia Supremo Arabica, and Rwanda Arabica

Amongst its blends, the two popular products are:

Beginning Blend – consists of 50% Brazil Santos Arabica and 50% Laos Robusta with medium dark roast level

Libra Blend – consists of 90% Brazil Santos Arabica and 10% Colombia Supremo Arabica with medium roast level

At present, it supplies to >25 customers including Kettle Bell, Little Salty Cafe, and Union Chain Group

Current output on average is c.325kg / month from Aug 2018 to Jan 2019, with a maximum capacity of 2,500kg / month; plans to increase maximum capacity to 10,000kg / month by the end of the year

Revenue is generated through: (1) sale of coffee beans priced between MYR65 – 75 / kg; and (2) delivery fees, charged when orders fall below 10kg / month

Generated an average of c.28% EBITDA margin in the first year of operations; forecasted to generate revenue of MYR450k, with an EBITDA margin of c.29% in 2019

Expansion plans include: (1) developing new blends; (2) R&D in roasting and cupping; and (3) securing more small independent cafes and restaurants

Traction

Generated an average of c.28% EBITDA margin in the first year of operations; forecasted to generate revenue of MYR450k, with an EBITDA margin of c.29% in 2019

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