KAWAN Food Bhd has taken a 32.5 per cent stake in up-and-coming Malaysian startup, Kejap Food, a homegrown fast-food brand serving up local delights.
With a history dating back to the 1960s, Kawan Food is one of Malaysia's leading exporters and largest manufacturer of ethnic food delicacies in the frozen food industry. The group is known for its frozen paratha, chapatti, spring roll pastry and other Ready-To-Eat meal products.
This acquisition is part of Kawan Food's efforts to establish itself in the food industry, while expanding on chosen categories, widening its distribution channels and diversifying its business ventures.
Kejap Food opened its first outlet at Caltex Setiawangsa in October 2020, looking to break into the drive-thru segment where western fast-food brands dominate. The fast-food brand offers a range of local staples like nasi lemak, roti bakar, karipap, lekor, satay and freshly brewed kopi and teh tarik.
Within a year, Kejap Food successfully raised funds through equity crowdfunding platform, Mystartr, and opened up its second outlet at Petron Miles 3 Federal Highway, Shah Alam.
Kejap Food is set to expand its operation into five more outlets in Klang Valley this year. This includes four drive-thru outlets, one central kitchen and one all-new concept dine-in outlet. The team is also working on its expansion plan to other states in 2023.
Following this move, Kawan Food is currently the second-largest shareholder in Kejap Food.
Kawan Food trusts in Kejap Food's long-term prospect, and there is confidence that this investment will drive favourable synergy for both parties.