East Ventures Leads the Legit Group Startup Funding of IDR 43 M
East Ventures led the seed funding of US$ 3 million or around IDR 43 billion for the culinary startup Legit Group. This company competes with Gojek and Grab in the cloud computing-based restaurant business, aka cloud kitchen.
Another investor participating in the funding is AC Ventures. Legit Group plans to use this fresh fund for aggressive expansion.
Co-Founder and CEO of Legit Group Sumarno Ngadiman will add operational location points to reach a wider range of customers. Currently, the company operates in 45 distribution points.
The fresh funds will also be used to create new brands or brands that focus on delivery services and strengthen marketing. Currently, Legit Group has three brands, namely Pastaria, Sei’Tan and Juju Chikin.
Legit Group is Planning to Launch Two Other Brands
The culinary startup plans to launch two other brands. In addition, expanding operations to 135 distribution points by the end of the year. Sumarno said, the ‘DNA’ of the cloud kitchen business is to prioritize delivery.
This is different from offline or traditional restaurant business. The key to the success of the Food and Beverages (F&B) business which focuses on delivery services is being able to create high-quality food, have consistent timeliness, and remain optimal during delivery.
“In addition, the price is affordable, so customers can make it part of their daily habits,” said Sumarno in a press release, Thursday (9/9).
Indonesia has the largest food delivery service market in Southeast Asia with a value of US$ 3.7 billion or growing 32.5% per year. Nusantara accounted for 31% of total regional shipments.
What’s more, the corona pandemic has pushed people to switch to digital services, including in terms of ordering food. He is optimistic that this habit will remain a trend even after the Covid-19 pandemic is over.
Legit Group was founded in February. This culinary startup has a mission to become a leading F&B brand that focuses on delivery services in Southeast Asia.
From the start, Legit Group built strategic partnerships with Ismaya Group, Yummy Corp, and GK Hebat to accelerate expansion. In addition, encouraging business growth strategies.
“With my experience as Eatwell Group’s founder and the strategic partnership with the Ismaya Group and Yummy Corp, we’re in a position to be able to use our infrastructure.
This is to be able to expand operations quickly without a large initial investment,” he said. He is optimistic that this will allow Legit Group to expand its coverage quickly, thereby lowering shipping costs for customers.
“We’ve been in the food and beverage business for more than twenty years and will use our experience to create products that customers want while still applying the best food safety handling standards,” he said.
Digital Systems Needed by F&B Businesses to Survive in the Midst of a Pandemic
Managing Partner of East Ventures Roderick Purwana said, F&B players can no longer rely on selling food at traditional places.
“They now include an online food delivery service, which is a necessary step to stay afloat through the pandemic,” he said.
He sees that Legit Group has proven to be able to create a unique and attractive F&B brand with impressive growth, even though it was only established at the beginning of the year.
East Ventures Operating Partner David Fernando Audy added, Legit Group replicated Ismaya’s successful recipe by leveraging kitchen and network infrastructure, various online initiatives and technology.
This is considered to be able to deliver quality food with good taste and affordable prices, at the level of speed and economies of scale.
Co-Founder and Managing Partner of AC Ventures Adrian Li agrees that the development of on-demand delivery infrastructure opens up new billion-dollar opportunities for food brands.
This concept offers delicious food at low prices and convenience. “The Legit team brings proven food and beverage execution together, with technological know-how that makes the company one of the most promising in the sector,” he said.