Ata Plus - Asfa Fortune

Asfa Fortune

Asfa Fortune is an importer and distributor of wholesale commodities with their primary focus on essential products for cooking. Founded in 2015, the Malacca-based company currently imports staple and root vegetable produce namely onion, garlic, potato, dry chilli, ginger, sugar and rice. Its focus is to serve customers in the provincial and rural locations with quality products that are competitively priced and providing last mile delivery service.

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Introduction

Asfa Fortune is an importer and distributor of wholesale commodities with their primary focus on essential products for cooking. Asfa Fortune is able to ensure a steady stream of revenue with a constant demand for its products by tapping on the retailers in rural areas which consists of traditional stores and provincial sundry shops which make up the largest number of food retailers in Malaysia today.*
 

 

Mission

 


What We Do

The Challenge

Rural small traditional stores and provincial sundry shops struggle to access quality wholesale items at a competitive price (especially on imported products) within reach. They will have to travel far to acquire such products from hypermarkets and other wholesalers such as Tesco and Mydin - accessible only in cities and bigger towns. 

The transport cost in itself therefore deprives local and rural entrepreneurs of their profit margin, unable to transfer the cost itself to rural buyers. Accessibility to distributors of these wholesale products at a competitive price posed as a challenge to local and rural entrepreneurs to thrive. 
 

Our Solution

Asfa Fortune’s strong relationship with its suppliers allows for the importation of the products at a much competitive price. The main business focus is on the distribution and supplying of wholesale products to small traditional stores and provincial sundry shops in rural areas, a market that is relatively untapped and fragmented. Leveraging on competitive price as well as services ranging from warehousing and delivery, Asfa Fortune is able to cater to a wide range of rural based customers including restaurateurs. 

Asfa Fortune’s business model bodes well with the Government’s introduction of ‘Small Retailers Transformation Programme’ (TUKAR) that aims to facilitate the modernisation of at least 5,000 traditional sundry shops. 

Asfa Fortune primary products are onion, garlic, dried chilli, potato, cooking oil. We also sell value added products such as chilli paste and chopped onion. 

 

 

Products

 


Why Are We Different

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Dedicated to Servicing Provincial and Rural Areas

We are dedicated to servicing staple supplies to wholesalers, small traditional stores and provincial sundry shops in rural areas at a competitive price

 

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Offer Last Mile Delivery

We offer a simple solution to the limited access and reach in product distribution to provincial shops, with last-mile delivery services to our customers

 

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Tight-knit Ecosystem of Partners

Our exclusive relationship with suppliers allow us to offer competitive pricing

 

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Focused Range of Quality, High Demand Products

We are focused on bringing quality, basic and staple products that will be in constant demand

 


Our Revenue Model

Asfa Fortune fortune’s main business is essentially consolidating the role between suppliers (exporters of products) directly to the customers, removing layers of intermediaries that usually drives up the cost. 

As a predominantly cash-based business. Hence Asfa Fortune handles its cashflow by offering firm payment terms for buyers accompanied by a more flexible terms with its suppliers. All customers pay up-front (up to 30% of any purchase order) and 100% upon fulfillment of the consignment. 
 

ASF Revenue

 

 

 

1. Wholesalers, Small Traditional Stores & Sundry Shops

A bulk of our sales go through supplying wholesalers, convenient stores and sundry shops in provincial and rural locations, which buy in volume. We gain roughly 15% profit from the sales.

2. Restaurants

Restaurants as well as small food stalls is also one of our stable and returning customers with fixed consignments. Though this is not our main revenue, the relatively quick turnover with sizeable volume ensures continuous sale.

3. Direct to Consumers

We charge a higher margin to consumers with smaller purchases. Currently we make a hefty profit margin of up to 50 % on sales direct to consumers

 

Competitors

 


Our Market Opportunity

According to a report by USDA Foreign Agricultural Service on Malaysia Retail Foods (2017), close to 56% of the total food retail food sales in Malaysia is channeled through traditional stores, grocery stores and other sundry which is the main constituent of Asfa Fortune’s customers. 

Carving out from the total of Malaysian Wholesale Trade industry, Asfa Fortune’s current business growth is on track to capture this market. With the average profit margin of 20% on all products sold, Asfa Fortune is able to generate a healthy profit of RM2 to RM4 million a year. 
 

Malaysia’s Total Fresh vegetables Import (p.a) * RM3.21 billion
Small Food Retail (provincial & sundry shops) 93,800 shops
Average No. of purchases retailers (p.a) RM1,478
Total purchases by consumer (p.a) ** RM138.67 million
Target Market (10%) - Melaka, Penang, Johor, Perak, Kedah, Sabah, Sarawak RM13.87 million
Asfa Fortune’s profit margin @ Average of 20% RM 2 - RM 4 million (p.a.)

Our Strategy

Short Term 

  • Introduce value added goods to existing products - to manufacture chilli paste and chopped onions with own brand and packaging
  • Secure JV partners in the state of Selangor, Perak, Kuala Lumpur & Kedah
  • Initiate and secure International JV in Indonesia focusing to Medan market.
  • Advertise Asfa Fortune branding in local and rural radio station

Medium Term 

  • Acquire distribution license for cooking oil and processed sugar
  • Repackage and brand processed sugar and cooking oil
  • Acquire import and distribution license for basmathi rice'Secure JV partners in the state of Johor, Sabah & Sarawak.
  • Start to market own Asfa Fortune’s rebranded/repackaged products
     

Long Term 

  • Repackage and brand basmathi rice and chopped chicken
  • Secure JV partners in the state of Pahang, Terengganu, N. Sembilan & Kelantan
  • Secure International JV in Batam, Bukit Tinggi and Dumai.
     

Our Achievements

Asfa Fortune Sales Traction

Currently, Asfa Fortune has 500 paying customers which is predominantly businesses and retailers (B2B). Having established operations only in Melaka and Penang alone, Asfa Fortune has secured orders amounting to just under RM3.9 million worth of revenue annually.

Asfa Fortune has also secured the certificate of conformity of agricultural produce for the import from its suppliers based in India, Pakistan and China.
 


Usage of Funds

ASF Use of Funds

Sales & Marketing
Pushing out Asfa Fortune’s brand visibility through major local radio advertisements

Capital Expenditure
Purchase of machinery (packaging and chopper) for onions and other value added products

Working Capital
Rolling capital for the purchase of imported products from suppliers

Admin & Operations
Workers and administrative staff expansion from 3 to 5 resources

Rental
Rental of a warehouse and administrative office

 

Investor Exit Strategy

For investors in Asfa Fortune Sdn Bhd, we intend to commit a 10% dividend payout every 6 months, from year 2020 onwards.

 

How Can I Invest?

 

Option 1 :

Investments can be done directly through this page by clicking on the ‘INVEST’ button.

 

Option 2 :

Alternatively, investments can also be made by depositing directly to the trustee account through :

  • Bank transfer; or

  • Cheque

For Option 2, please contact [email protected] to complete the investment process.

 

 


The Team

Norehan Binti Taha

Co-Founder/CEO

Norehan have a long list of experience in the construction industry covering project management to handling resources. She left the industry, bringing together with a the wealth of experience to manage the wholesaling of food products which suits her background and personality. Norehan have successfully built the business from being an enterprise to a Sdn Bhd with an enviable growth.

Zambri Bin Kasim

CO-Founder/COO

Hailing from the hospitality industry, Zambri has built reputation for handling clients with utmost professionalism. He is now overlooking the process and operations for Asfa Fortune, dealing with both customers and suppliers.

Term Sheet

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