Scaling a F&B business beyond shores
When Daniel Tay founded Foodgnostic in 2013, he had a clear vision: To create high-quality cakes and pastries for Singapore’s café scene. A decade later, the company has grown into a powerhouse supplying baked goods to thousands of outlets, not just in Singapore but across the region. Expansion into China has been a game-changer, with Foodgnostic now supplying one of the largest brands in the country.
This rapid growth, however, did not come without its challenges. Scaling operations, managing cash flow, and navigating new markets required a financial partner that understood the business’s needs. For Foodgnostic, that partner was DBS.
“We started our relationship with DBS Bank back in 2013 as a new entrant to the F&B industry. They were the first bank who granted us our first working capital loan to kickstart our business and also helped us with our cash management needs,” he recalled.
That initial boost allowed Foodgnostic to establish itself as a trusted supplier to major cafés and restaurants across Singapore. As demand for its products grew, so did the need for larger-scale production and efficient financial management.
Breaking Into the China Market
Foodgnostic’s success at home paved the way for expansion overseas, but entering China was an entirely different ballgame. “To be successful in China is very different from being successful in Singapore,” Tay explained. “In Singapore, we supply to 160 outlets, but in China, we supply to more than 7,000. That’s a very different operation.”
To meet the scale required, Foodgnostic made the strategic decision to build a factory in China. This major step forward required significant investment, and once again, DBS stepped in. “When we needed to expand our business-to-business operation in China, we decided to start a new factory to cater to the demand. This is where DBS came in to give us a new line of credit to help us expand our business and build a new factory,” said Tay.
The expansion proved to be a turning point. Today, Foodgnostic is a supplier to one of China’s biggest brands, significantly strengthening its foothold in the vast market.
Navigating Challenges
Growth comes with its own set of obstacles, particularly in an industry where maintaining steady cash flow is critical. “All expansion comes with challenges. As a business owner, you have to face them, fight them, and win the battle. And now we have plans to expand further,” Tay said.
This is where the relationship between Foodgnostic and DBS has played an important role. Beyond financing, the bank has provided advisory support and market connectivity to help the company navigate the complexities of international expansion.
Tay emphasised the importance of having a banking partner that understands the needs of a growing business. “Cash flow is one of the main hurdles for all businesses, and banks must be able to ride through the tough times with them. The relationship with the bank is built on mutual trust and support. This is what DBS brings to the table.”
A Growing Vision
Having established itself as a major player in both Singapore and China, Foodgnostic is setting its sights on even bigger goals. Tay is determined to take Singapore brands beyond local shores and establish them as globally recognised names. “My biggest vision is to bring our local Singapore brands beyond our shores, and I believe DBS, with their expertise in connectivity, can help us achieve this,” he said.
With continued support from DBS, Foodgnostic is well-positioned to expand into new markets, strengthen its supply chain, and introduce innovative offerings to consumers worldwide. The company’s journey from a small bakery supplier to a cross-border business is a story of ambition, resilience, and the right partnerships; proof that with the right ingredients, success is always within reach.
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