Segari Raises US$16 Million Series A Funding Led by Go-Ventures
Startup Segari announced that it had received Series A funding of US$16 million (approximately Rp227.6 billion). Segari is a social commerce grocery startup that provides fresh products on its platform for the public.
This Series A funding was led by Go-Ventures with participation from SIG (Susquehanna International Group) and various strategic investors such as Gunung Sewu Group (one of the largest agricultural and food groups in Indonesia), Alfamart, and Intrinity Capital which is affiliated with Gulaku.
Segari investors since the early stages (seeds) such as AC Ventures BEENEXT, and Saison Capital are also involved in this funding round.
“The current situation has become a catalyst for the growth of the online market in Indonesia. More and more consumers are turning to online purchases, especially shopping for their daily needs,” said Aditya Kamath, Partner of Go-Ventures.
“Over the past year, Joshua, Farand and Farandy have shown outstanding execution, Segari is growing very fast and still maintaining the best economic unit in the sector. They are the right team to solve one of Indonesia’s most pressing problems, namely the complex agricultural distribution chain,” added Aditya.
The Funding will be used to Strengthen the Infrastructure
Segari’s CEO, Yosua Setiawan said, his party will use the latest funding to strengthen infrastructure, ensure a more efficient process from farmers to consumers so that Segari can grow bigger and be able to provide positive social impacts for local farmers.
To that end, Segari plans to strengthen and add teams in various fields, including operations, technology, and marketing.
This startup is committed to simplifying the complex distribution chain in this country by leveraging technology and empowering communities as partners in more efficient sales and distribution.
Yosua Setiawan, CEO of Segari said “The agricultural distribution chain is one of the most complex problems in Indonesia. There are still many layers from farmers to agricultural products to consumers.”
“We hope to have a positive impact where consumers can receive quality food ingredients faster and at lower costs. On the farmer’s side, we also help them to receive a fair price for the products they sell,” added Joshua.
In order to access a variety of Segari products, ranging from vegetables, fruits, meat, and staple foods, customers can place orders directly through the website or application.
In just 15 hours, fresh food products will reach consumers from farmers. Most of Segari’s fresh produce is sourced directly from partner farmers in Java and Sumatra.
Reasons for Investors to Fund Segari
Meanwhile, Go-Ventures Partner Aditya Kamath said the reason for this funding was because he saw Segari has great potential in distributing food in the country.
Especially during the pandemic, the need for groceries in the community is increasing and more and more consumers are turning to online purchases, especially shopping for their daily needs.
“Over the past year, Segari has grown very quickly and has maintained the best economic unit in the sector. They are the right team to solve one of Indonesia’s most pressing problems, namely the complex agricultural distribution chain,” said Aditya.
This startup has become the choice of residents of Jakarta and its surroundings in meeting the needs of fresh products in less than twelve months since it started to operate.
The proof, the company managed to increase the number of users, orders, and revenue by more than 20 times.
AC Ventures Managing Partner Adrian Li said that his party was interested in providing funding because Segari had shown the best execution in realizing its vision and creating value and convenience for consumers in Indonesia.
In addition, Segari’s social commerce model has a strong competitive advantage, as the platform can reach consumers at lower acquisition and logistics costs, creating a more profitable economic unit.