Fefifo
Fefifo (/fee-fai-fo/) is a technology-first Co-farming company, that focuses on empowering a new generation of progressive farmers in ASEAN by providing traditional smallholder farmers and young agriculture graduates with ready-to-farm spaces and technologies to kickstart a modern farming business.
50% OFF VALUATION, MINIMUM INVESTMENT RM 3,000
In view of the global COVID-19 crisis, Fefifo is offering a 50% discount on its pre-money valuation for its ECF investors, with a minimum investment of only RM 3,000. See below for more details.
| 1031% of target | 0 days left |
|---|---|
| Investors | 54 |
| Min Target | RM 300,000 |
| Max Target | RM 4,500,000 |
Introduction
Fefifo is born of an audacious vision - to be a technology-first food producer, making healthy food accessible to everyone.
Our mission is to make sustainable, profitable smallholder farming commonplace throughout South East Asia, where smallholders grow much of the food Asia consumes, yet are in the bottom 40% (B40) of the income pyramid.
Like the giant beanstalk that grew from magic beans to reach the golden egg beyond the clouds, Fefifo is an Impact Enterprise (granted Social Enterprise status by the Ministry of Entrepreneur Development) that seeks to transform the B40 smallholder farmers into Agropreneurs and lift them up the income pyramid.
What We Do
The Challenge
-
80% of the food Asia consumes are produced by smallholder farmers with 65% of those smallholder farmers today set to retire in 15 years. By 2030, there will likely not be enough smallholder farmers to produce food for the world population. Traditional farming methods are no longer sufficient, not sustainable and not profitable enough to attract the next generation.
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The interests of smallholder farmers are neglected in the current economy due to the limited knowledge of modern farming techniques, lack of scale, high capital expenditure and the tendency to be exploited by middlemen. As a result, contract buyers which buy 60% of all smallholder produce suffer from inconsistent supply and quality, risking their reputation when things go wrong.
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There are no breakthroughs in AgriTech whilst many AgriTech solutions in the market often do not address lower income smallholder farmers and focus primarily on only a portion of the Agri-value chain that is accessible only by large Agri-businesses.
Our Solution
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Fefifo’s Co-farming model provides modern, ready-to-farm space as a service, thus allowing smallholder farmers and young unemployed Agri-graduates to start their own commercial farming business with zero Capital Expenditure (CAPEX) whilst giving them access to modern Agri-science, technology and training.
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Fefifo offers its ‘Agropreneurs’ access to its network of established partnerships across the entire Agri-value chain from input suppliers to guaranteed buyers, along with stable and attractive returns.
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Fefifo’s proprietary technology and Standardised Operating Procedures (SOPs), digitalises the entire seed-to-sale process whilst maximising operations and yield through pre-curated crop portfolios, farm financial governance, community knowledge and support, and harvest accountability and transparency.
Why Are We Different
Fefifo is the first-mover in solving smallholder issues as a value chain:
1
We turn modern farming from a high CAPEX game to pure OPEX play with guaranteed crop buy back from buyers that Fefifo pre-establish.
Agropreneurs only need to pay “Farmspace-as-a-service” rental fees to get access to expensive modern farming infrastructure and crop systems and profit share, not revenue share, with us. This way we align our interests with our Agropreneurs – only when they are successful that Fefifo is successful.
Proper in-farm roads | Drainage | Rain harvesting | Solar power | Accommodation for workers and Agropreneurs | Storage facilities | Packing & Delivery Centres | Leisure facilities & more!
2
Risk management is top priority at Fefifo, ensuring that we are not just a purveyor of physical space or technology.
3
Our digital platform DDFN, short for “Digital Distributed Farms Network”, is designed to help solve the many problems faced by smallholder farmers and contract farm buyers by standardising farming procedures and digitalising farm management processes across a distributed network of farms.
Using our DDFN digital platform and farm space design to solve traditional smallholder farm problems.
Our Revenue Model
Fefifo’s core revenue is Farmspace-as-a-Service (FSaaS) rental fees and Crop sale profit sharing.
Our Market Opportunity
ASEAN is home to a multi-billion agriculture sector dominated by rural farming for us to serve.
ASEAN Agriculture Sector Value
Market Opportunity
Contract farming dominates private farming and is widely promoted by governments.
Human Capital Opportunity
Despite urbanisation trends, SEA’s rural pop will remain sizeable with rural pop % above global average.
Source: ASEAN Statistical Highlights 2018, ASEAN.org; The Global Economy 2017 Share of Agriculture; Euromonitor 2018; World Bank Group; ADB Institute; FAO.org United Nations – Contract Farming Resource Centre; UN Population Division 2018; UN Household Size & Composition Around The World 2017; Monitor Deloitte Analysis
Our Strategy
5 to 50 acres in 2 years
| 50 Acre Land Split | Land Split | Greenhouse Farming | Open Farming |
|---|---|---|---|
| Highland | 30% | 100% | 0% |
| Lowland | 70% | 40% | 60% |
50-Acre Crop Split
Fefifo’s 10 year South East Asia plan towards an IPO exit
Revenue Growth Levers
Year 4-5:
A
Per acre Crop Revenue x2 from Yr 3.
Growth drivers:
1
Higher highland split and higher greenhouse split on lowland Novel crop system redesign
2
Push off consumer brand direct to grocers in some countries (premium pricing)
3
Expanding portfolio with more lucrative signature produce
4
Some advance Agtech (chemicals/nutrients, greenhouse innovation, e.g. film)
Year 6-8:
A
Per acre Crop Revenue x3 from Yr 3.
Growth drivers:
1
More advance Agtech (seed variants, chemicals/nutrients, precision farming, automation, greenhouse innovation etc.)
2
Some export market opportunities
3
Beginnings of advanced applicability for big data for optimising crop SOP and space design
B
Member fees increase by 30% from Yr 3.
4
Rationale: With increase in crop sale by at least 3x, we expect to be able to raise member fees by at least 30%
Year 9 onwards:
A
Pre acre Crop Revenue x 4 from Yr 3.
Growth drivers:
1
Sufficient portfolio and geographical footprint to fully take advantage of export market
2
Sufficient data for advanced applicability of big data to reap benefits and optionality for Fefifo into other business lines (fintech for smallholders)
B
Member fees increase by 50% from Yr 3.
3
Rationale: With increase in crop sale by at least 4x, we expect to be able to raise member fees by at least 30%
5 Year DCF with Terminal Growth Valuation Method1, of Fefifo Co-farming YoY Scaling Plan
| Y1 | Y2 | Y3 | Y4 | Y5 | Y6 | Y7 | Y8 | Y9 | Y10 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Co-farming Acreage (Prod. Acreage) |
25 ac. (20 ac.) |
50 ac. (37 ac.) |
100 ac. (72 ac.) |
150 ac. (108 ac.) |
200 ac. (144 ac.) |
250 ac. (180 ac.) |
300 ac. (216 ac.) |
350 ac. (252 ac.) |
400 ac. (288 ac.) |
450 ac. (324 ac.) |
| EBIT Adjusted Free Cashflow (FCFF) | (RM1.54m) | RM213k | RM1.66m | RM5.19m | RM7.42m | RM15.44m | RM19.30m | RM18.80m | RM32.47m | RM42.02m |
| Present Value | RM164k | RM985k | RM2.37m | RM2.61m | RM4.18m | WACC2: 29.8% Discount Rate | ||||
| PV of Terminal | RM16.06m | Perpetual growth rate: 3% | ||||||||
| Net Present Value | RM26.37m | Pre-money Valuation | ||||||||
Note:
1 DCF Model developed with Impact Investment Exchange (IIX)
2 WACC = (Risk Free Rate + (Beta x Country Risk Premium) + Country Risk Premium + Size Premium) x (1+Illiquidity Premium) = (1.9% + (0.89% x 6%) + 1.7% + 15%) x (1+25%);
Source: Bloomberg, NYU Stern, Jan 2019
Further Discount Off Pre-money Valuation
| Pre-money Valuation (>50% OFF) |
+Equity Crowdfunding | Post-money Valuation | Equity Stake in Fefifo Malaysia |
|---|---|---|---|
| RM 13m | +RM 4.5m | RM 17.5m | 25.25% |
Indicative Usage of Funds
Funding Allocation for First RM4.5m
Fund Raise Tranche 1
First milestone of Minimum Plot Size - RM4.5m
- 5 acres lowland farmspaces in Rantau, Negeri Sembilan
- 2-3 Agropreneurs (Rock Melon, Chilli), signed LOIs
- DDFN 1.0 build
Our Achievements
MAR 2019 – Founded in Singapore, Fefifo Pte Ltd
MAY 2019 – Startup in Malaysia, Fefifo Malaysia Sdn Bhd - RM1.1m Paidup Capital
JUN 2019 – MOU signed with Crops for the Future Research Centre (CFF) for collaboration in R&D technology, application, transfer and training
DEC 2019 – MOU signed with Green World Genetics (GWG) for Guaranteed Buy-back program
APR – DEC 2019
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Secured Angel funding – RM1.05m
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Secured corporate investment – RM1.2m
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Secured key suppliers’ investment (Greenhouse supplier, Agri-space developer) – RM600k cash equivalent
JAN 2020 – Secured endorsement from International Pepper Community to develop modern and sustainable pepper farms
FEB 2020 – Secured 15 (+6) year lease for 18.3 acres privately owned land plot for Pilot farm in Rantau, Negeri Sembilan
MAY 2020 – Granted Social Enterprise status, acknowledged by the Ministry of Entrepreneur Development of Malaysia
ON-GOING
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LOIs signed by 7 Agropreneurs
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Partnerships with universities to access Agri-graduates, and to develop data science applications in A.I./machine learning, around farm performance and smallholder access to microloans and crop insurance
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Fund raising through Impact Investment Exchange (IIX), supported up to RM24m
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Fund raising through Ata Plus' equity crowdfunding platform, supported up to RM4.5m
Follow Fefifo on LinkedIn for more on-going updates
The Team
Kelveen Soh
Co-Founder & CEO
19 year entrepreneur. Co-founded Yolk (a regional digital agency) in 2001, built and scaled across SEA, sold to the world's largest communications group (WPP network) in 2011 and recently exited in 2018. Served as CEO of Grey Digital (Regional) and Chief Strategy & Digital Officer of Grey Malaysia. Business mentor and advisor to regional conversational A.I. startup.
Chris Fong
Co-Founder & Chief Innovation & Strategic Growth Officer
13 years of deep expertise in business and technology consulting, process design and re-engineering, building business lines and practices for top tier institutions (KPMG, PwC, global and regional financial institutions). MSc in Technopreneurship and Innovation from NTU. Alumni of deep tech startup builder and accelerator, Entreprenur First.
Low Jun Jek
Co-Founder & Chief Brand & Product Officer
19 Year entrepreneur. Co-founded Yolk with Kelveen, built scaled and sold the regional digital agency to WPP network. Served as Grey Digital's Executive Creative Director for 7 years post acquisition. Award winning creator of innovative tech-related ideas, digital brands and products. Invited to multiple international design award judging panels.
Alex Lee
Country Manager & Agricultural Operations
Executive turned Agropreneur. Over 20 years in managing international brands & business accounts, decorated with multiple marketing awards and honours. 5 years of hands-on experience in farm business planning to farm operations, selling agri-inputs, setting up own modern farm systems, greenhouses and managed entire tomato farm operations with Vincent for over 3 years. Certified in Modern Fertigation Systems & Smart Irrigation.
Vincent Teh
Chief Grower & Agricultural Operations
Over 10 years in Agriculture industry, hailing from one of the largest farms in Cameron Highlands. A passionate grower with deep knowledge on growing a variety of highland and lowland crops. Planned and setup farms from greenhouse to open farming across Selangor, Perak, Pahang, Kelantan. Extensive network across entire value chain from farming inputs to logistics to market access. Pioneer in commercial implementation of smart irrigation systems in Malaysia.
Chris Soh
Chief Real Estate Development Officer
A decade of experience in real estate development, construction, planning and project management, including recently launched and much sought after low-density Ari Permaisuri, Akasia, Rumbia, Ixora and other boutique mixed developments in Klang Valley.
Nanthakkumar Siva
Chief Technology Officer
Over 15 years of deep expertise in big data mining, advanced modeling, and advanced analytics for transformative data-driven intelligence that impact of across operations, global supply chain, finance, inventory, IoT, and automating predictive machine learning forecasts.
Endorsed By A Strong Advisory Panel
Agricultural Science
Advisor
Dr. Sayed Azam-Ali
CEO, Crops For The Future
Research Center
Agri-business Finance
Advisor
Yoong Wei Chien, CPA
APAC Audit Lead, Cargill
& Ex-FC of Honeywell
Legal Counsel /
Agri-Science & Tech IP
Izwan Zakaria
Managing Partner,
Izwan & Partners
Open Innovation & AgriTech
Ecosystem Advisor
Adam Lyle
Executive Chairman,
Padang & Co
Get to know the founders in an interview with Ata Plus
50% OFF VALUATION,
MINIMUM INVESTMENT RM 3,000
In view of the global COVID-19 crisis, Fefifo is offering a 50% discount on its pre-money valuation for its ECF investors, with a minimum investment of only RM 3,000. Click the button below to invest now.
Term Sheet
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