KedaiSayur Announces Fresh Funds of 50 Billion Rupiah
Startup KedaiSayur announced that it has received funding in a bridge round of $3.5 million or around 50 billion Rupiah. It was not announced specifically who the investors involved were.
In his statement, KedaiSayur was also confirmed as a technology-based wholesale company under the auspices of the Triputra Group. The concept of this bridge round basically becomes the participation of investors in a startup funding to welcome the closing of the next series.
Generally, the new equity distribution is delivered after the funding target in a certain series is met, adjusted according to the agreed formula and based on the value disbursed by each investor.
In addition, in the agreement there is an agreed deadline regarding the closing of the next series. Previously, their competitor, Sayurbox, also announced the acquisition of funds in the bridge round from Metrodata.
The fresh funds will be focused on supporting business acceleration and strengthening the technology in it. This is in line with the growth that is being pursued — until the end of 2021 KedaiSayur claims to have achieved 24x business growth compared to the previous year through the KedaiMart application.
“With our commitment as a provider of good supply chain management to fulfill food supply from upstream to downstream, KedaiSayur continues to improve service quality and always provides added value for all parties involved,” said KedaiSayur CEO Adrian Hernanto.
The customer satisfaction is the key in developing the company’s business, the company will continue to make efforts to create operational excellence.
Adrian added, in addition to providing convenience in meeting people’s food needs through applications and dashboards for ordering, currently KedaiSayur’s focus is also on developing the digitization of land slowly.
“Through monitoring using technology, we can do forecasting and later each region will be able to have sufficient data to increase their business scale, which is supported by the transparency of the data generated through the digitization process,” he said.
Had to Do a Pivot Due to the Pandemic
In May 2020, KedaiSayur announced a change in business focus to an online food delivery service. The reason is that the food product market has begun to change since the spread of Covid-19 began in early March.
Demand from hotels, restaurants and cafes fell by 50%. Whereas previously the growth of this business was more than 20% per month.
Meanwhile, the demand from vegetable growers and household customers has increased significantly at the same time. It is on this basis that the company is confident to take business pivot decisions.
The company released the KedaiMart app in Februaryy 2021 to meet daily food needs with the concept of “supermarket in your pocket”.
The Market Is Growing, The Competition Is Getting Fiercer
Since its establishment in 2018, KedaiSayur has twice received funding, with a total of $5.3 million supported by investors such as East Ventures, SMDV, Triputra Group, and Multi Persada Nusantara.
Now they have more than 5 thousand partners from vegetable traders, HORECA, and wholesale markets. The company also cooperates with more than 250 farmers who provide product supplies to meet their needs.
Indonesian grocery market size will reach $169.4 billion in 2022 with a CAGR of 5.2% in the last two years according to the IGD report. It confirms Indonesia as the 13th largest grocery market in the world, and the second largest in Asia.
Of course, this is a huge business potential, considering that the majority are still served by traditional retail businesses. Digitization accelerated by the pandemic has become a key opportunity for online grocery players.
It’s no wonder that throughout the pandemic period, startups in this field have continued to raise funds to support their business growth. A number of corporate actions related to strengthening the online grocery business were also carried out by local technology giants.