Capital opens to industry transformation: taking the hardest first step with small businesses

Until now Singfung Capital has mostly backed technology startups. From today we are also open to energy, emerging industries, and traditional businesses hit hard by the internet.

Why traditional industries

Many owners of traditional businesses have something good built over fifteen or twenty years: real craft, a steady supply chain, experienced people. What they lack is not ability but the conditions to take a first step into new channels and markets. The internet took their customers and pushed prices to the floor; they want to change but do not know where to start, and rarely find anyone willing to try alongside them.

We want to be the one who tries alongside them.

The first case: a furniture shop in Foshan

He had a 1,500 m² furniture showroom in Foshan. Locally he fought endless price wars with competitors and the shop next door, living on passing trade. Each day was like the last, and each day he lost a little more hope in the business. He tried live-stream selling, the hottest thing going, but traffic had to be bought dearly and the margin never covered the spend.

Yet we found the buyers were always there. In the showroom, in live streams, or after stumbling on a video, customers often wanted furniture delivered to their homes in Thailand or Malaysia. But the long chain — ordering, customs, sea freight, import clearance, delivery and installation — put many of them off. Find a shipping company yourself? Quotes all over the place, with timing and cargo protection resting on a verbal promise.

Not one shop's problem

We visited many furniture and home-goods makers in Foshan and found the same trouble everywhere: when a customer finally appears, furniture is not a small parcel — liking it is easy, getting it home and assembled is hard. It was not one shop's problem but a few missing links in a whole chain.

Connecting the whole chain

Together with the shop owners, we invested in or partnered with several South-East Asian logistics and installation companies that were struggling or close to failing but had mature supply chains and local know-how, then connected them to the group's freight forwarding. Customers pick what they like, we give a delivery window, and within it the furniture stands where they want it at home. Everything can be tracked, and any problem is solved by our own people — no more arguing separately with sellers and shipping firms.

He no longer needs the big showroom

Most striking of all, he no longer needs the expensive 1,500 m² showroom. With a third of the space, the manufacturing and supply chain he was always good at, and a 30 m² office, he now sells across South-East Asia. And the South-East Asian companies that were close to closing have steady business again.

A transformation never saves just one shop. More local opportunities keep growing from the chain.

What we look for

• A real business held back by channels or markets.
• An owner or team willing to change and to get their hands dirty.
• A gap we can close with investment, partnership or the group's resources.

We do not promise overnight turnarounds, but we will take the hardest first step with you. If your business is stuck at one link in the chain, leave your details in the Capital founder portal or simply write to us.