Incite Foodtech Sdn Bhd, a Malaysian foodtech venture has acquired Eatcosys Sdn Bhd, a homegrown retail-tech startup, stated a press release today.
Recognised by KPMG and HSBC as an emerging giant in Malaysia, Eatcosys is a one-stop retail technology solutions provider with a suite of retail and digital services.
Its solutions include a cloud-based POS system, CRM software, loyalty management, a transit advertising platform, e-commerce platforms, data insights, and financial services that address MSME and SMEs’ needs.
Meanwhile, Incite Foodtech is a company supercharging QSBF (quick-serving-beverage-and-food) brands’ growth with its “plug-in & scale” business model that uses formats such as physical outlets, shared spaces, kiosks, and cloud kitchens.
Its growth is also expedited through mergers and acquisitions (M&A) such as this recent one.
Brands under Incite Foodtech include Union Artisan Coffee, Le Claire, Lada Merah, Hope Coffee, Eggdicted, and Goodbooch. It has also acquired Wondermama Brand in 2021.
“The acquisition will enable us to advance our ambition of building a comprehensive, unified retail-tech ecosystem in the ASEAN region,” said Karen S Puah, the CEO of Incite Foodtech.
Capturing the retail-tech ecosystem
According to Karen, the retail-tech ecosystem Incite Foodtech aims to build will comprise the consumer-tech sector, retail marketing solutions, retail tech solutions, and fintech services.
The consumer tech sector focuses on F&B brands, such as the ones Incite Foodtech owns. According to the press release, future expansion on this front will include groceries, convenience stores, pharmacies, and electrical appliances chain stores.
Retail marketing solutions will involve redemption programmes, licensed-character promotions, merchant partnerships, and user activation.
On the other hand, retail tech solutions will focus on point-of-sales, customer relationship management, data analytics, and payment gateway. These are solutions that Eatcosys provides.
The last pillar, fintech services, comprises digital lending, equity crowdfunding, and venture capital. The expertise here may be coming from Eatcosys as it had acquired a stake in Fundnel Malaysia (now known as Alta) in March 2022.
Registered with the Securities Commission Malaysia, Alta is a digital marketplace for alternative investments such as equity crowdfunding.
Growing towards IPO
Combining their expertise, Incite Foodtech and Eatcosys aim to provide diverse solutions for both B2B and B2C segments. It will also let Incite Foodtech diversify its offerings beyond F&B brands, as outlined earlier.
According to the press release, this development is a “fitting response” to the latest government demand for industry players to develop more innovative products and market development strategies by leveraging the digital economy to revolutionise the retail industry.
Tham Lih Chung, co-founder and Chairman of Eatcosys, will be listed as the Group CEO. He stated that the parties aim to hit RM100 million in revenue within 12 months and are looking to expand business operations in the ASEAN region.
This partnership between Tham and Incite Foodtech dates further back, as Tham founded Union Chain Group Sdn Bhd, the group that owns Union Artisan Coffee, in 2020.
Union Artisan Coffee, as you may recall, is now a brand under Incite Foodtech since its establishment in 2020.
“Both parties aim to revolutionise the retail tech market in Malaysia, embedded with fintech,” Tham said. “It couldn’t have come at a better time for us to join forces and build a comprehensive ecosystem, with an IPO as the ultimate goal.”
- Learn more about Incite Foodtech here.
- Learn more about Eatcosys here.
- Read other articles we’ve written about funding here.
Featured Image Credit: Tham Lih Chung, co-founder and chairman of Eatcosys and Karen S Puah, CEO of Incite Foodtech