Dropezy Pivot Becomes a Kilo, Switching from Quick Commerce Business to Poultry Downstream Player

After more from one year out from business quick commerce, Dropezy announced pivot all at once rebranding to "A Kilo". The business sector involved is the downstream sector of poultry processing and distribution.

In an official statement, Co-founder Sekilo Chadni Chainani said that at the end of 2022 his party decided to focus on achieving profitability. Therefore, starting to dig into the data, it was discovered that there was great potential in the protein category. Marrying these needs with strong team capabilities in operations and supply chain gave birth to Sekilo.

“We officially switched to Sekilo in January 2023, [..] B2B (segment) became our new mission, distancing ourselves from B2C,” said Chadni.

From his findings, there are more than 270 million Indonesians who rely on chicken as their staple food, the need for an efficient and efficient poultry distribution system is an important factor. To date, the poultry supply chain has been highly fragmented for B2B buyers, facing challenges due to market disorganization and mismatches between supply and demand.

In addressing this gap, Sekilo provides B2B food service providers with a revolutionary model that combines precision customization, advanced processing and seamless distribution.

“Our analysis and 4 years of existing data in the B2C space revealed a gold mine in the protein category—low wastage, high shelf life, surging demand and profit margins that laid the foundation for Sekilo's bold entry,” he added.

Travel pivot He admitted that this was not easy, he even had to lay off some of his employees. “Saying goodbye to our cherished team members was a heart-wrenching challenge, and as founders, we navigated this storm with resilience,” said Sekilo Co-founder Nitish Chellaram.

Kilo business model

Nitish continued, Sekilo is a startup rooted in logistics and supply chain expertise, emerging as a partner for various needs in the middle-downstream food service sector in Indonesia. Sekilo is here to transform the traditionally fragmented downstream poultry sector by digitizing the value chain and building a robust fulfillment infrastructure for a seamless B2B buyer experience.

In contrast to similar startups that play in the upstream sector, Sekilo sources poultry from all over Java and follows global standards, prioritizing Halal certification and NKF (Veterinary Control Number).

Sekilo's other differentiation lies in customization, offering tailored solutions from procurement to delivery, meeting a wide range of needs—from small shipments of 25kg for SMEs to large shipments of up to 10 tonnes/order.

“At Sekilo, our distinctive approach lies in a deliberate decision to concentrate on specific segments of the downstream poultry value chain – assuming control end-to-end. This strategic move empowers us to apply internal assessments, driving a multi-approach B2B customer profile.”

This move allows Sekilo to provide personalized and customized products to unique specifications, all supported by strict adherence to SOPs. The company also extends its services to various entities, including SMEs, HORECA networks, industrial players, startups e-grocery, and D2C processed meat plants.

“Our commitment to inclusivity is unwavering. "In addition, we are actively exploring opportunities to introduce a 'buy now, pay later' option for some of our SME buyers through strategic partnerships with third-party fintech platforms," ​​said Nitish.

Nitish continued, with a lean but dedicated team, his party not only implemented a positive PC3 business model but also redefined growth without requiring a large marketing budget.

For the record, Profit Contribution (PC3) covers all costs overhead indirect, such as marketing, administration and technology costs to EBITDA. The formula: PC3 = EBITDA = Revenue – Operating costs or PC3 = EBITDA = PC2 – Overhead costs.

Companies use strategy Word of Mouth to reduce customer acquisition costs even to almost zero. Besides that, it doesn't build consumer loyalty with discounts.

“This confirms that Sekilo's original solution meets market needs. No discount tricks here. Our suppliers and buyers stick around because they see the value we provide, and that is what differentiates Sekilo,” added Chandni.

Two Sekilo investors also provided statements. Kopital Ventures Founding Partner Fandy Cendrajaya said, as angel investors, he is excited to continue supporting Chandni and Nitish in any way possible. "Because they continue to build a positive cash flow business with strong fundamentals," he said.

Forge Ventures Co-founder and Partner Kaspar Hidayat added, “[..] I'm excited to continue supporting them as they embark on this new path. This shift is in line with market demand and I am confident in their ability to build a thriving business.”

Dropezy first appeared during the pandemic in early 2021 as online groceries, then turn into quick commerce post-series A funding obtained in September 2021 of $2,5 million. These funds were used to build dozens of dark stores spread across Jabodetabek. Until the end dark store closing in September 2022.

Startups quick commerce others had the same fate, such as Bananas and Radius. The only one who still survives today is Astro. This startup releases the D2C Astro Goods product which sells fresh vegetables, basic necessities, cooking packages, household care, personal care, children's toys, a variety of light snacks and contemporary coffee.