The Singaporean food and beverage (F&B) industry is facing challenges despite the rebound after the pandemic. Despite being renowned for its diverse culinary landscape and vibrant food culture, the sector faces rising costs and employment issues. The high operational costs to intense competition, mean that local F&B enterprises are in a relentless battle to innovate and stay afloat. Amidst these hurdles, the scarcity of specialized funding and support mechanisms has been a glaring gap, hindering the growth and evolution of homegrown F&B ventures.
When we heard about the new fund from Atlas, we wanted to speak to Yi Sung Yong, entrepreneur and co-creator of notable F&B platforms Atlas and Grain, about his vision for the fund. Recognizing the untapped potential within the local F&B landscape, he is spearheading a groundbreaking initiative aimed at nurturing and empowering the sector. The Atlas Growth Fund, a dedicated foodtech and F&B fund, is aiming to invest around USD 20 million into the industry. With a focus on fostering innovation, sustainability, and scalability, the fund aims to provide much-needed capital and strategic support to promising F&B startups and SMEs in Singapore.
Terng Shing from SYNC explores the future of AI in the marketing and PR industry
In this interview, Yi Sung Yong delves into the intricacies of the Atlas Growth Fund and its mission to transform the local F&B scene. As we explore his insights and vision, it becomes clear that this initiative is not just about financial investment; it’s about cultivating a thriving ecosystem that is sustainable.
Can you explain how the fund works and what you are aiming to fix?
Atlas Growth Fund pledges up to $20M of growth capital for F&B businesses that qualify. The first 100 F&B businesses that qualify will get $10k of pre-approved funding, and a 6- month subscription to *core Atlas products.
Singapore is a food haven and often we lament the collapse of local food culture but no one is doing anything about it. Record inflation rates, labour shortages and increasing costs have left F&B businesses struggling to keep their doors open, with 28% failing annually. This announcement will be a response to safeguard the Lion City’s culinary future.
How does the partnership between Atlas and Choco Up work?
Due to its experience in the F&B scene, Atlas will be the face of the Atlas Growth Fund. The team will appeal to its considerable network to get interested F&B operators to apply. Choco Up will provide the tech and expertise to qualify the applicants. After that process, Choco Up will provide the necessary funds. This is a win-win partnership that will serve to uplift the F&B industry as a whole.
What are the tech solutions that the F&B entrepreneurs can access through this funding?
F&B entrepreneurs will get the core Atlas products- including software, hardware, and professional services. These products give businesses access to world-class online storefronts with delivery capabilities and serve as a secure payment gateway, allowing diners to view the menus and transact conveniently.
What can we expect from the local F&B scene in the next few months?
Singapore is widely known as a world-class culinary destination. By collaborating with F&B establishments and Choco Up, we hope to see more F&Bs scale up. Ideally, shortly, we can provide some operators stability to consolidate their businesses. Perhaps we may even see some of them realising their dreams of venturing outside of Singapore to bring our local flavours around the world!
What’s next for Atlas Growth Fund?
At Grain, we are the unique team that has built an 8-figure F&B business and we understand the tech required to scale. Together with Choco Up, we hope to help other F&Bs scale up to the same level as Atlas Growth Fund. We hope to fully utilise this fund to maximise the impact we can have on the Singaporean F&B industry.