KedaiSayur Announces Series A Funding, Wants to Strengthen Supply Chains for Farmers and Ranchers

Startups agritech KedaiSayur announced the acquisition of fresh funds in the series A round led by Kejora-SBI Orbit with an undisclosed nominal. Investors from the previous round also participated in the round, namely Triputra Group and several other strategic investors with undisclosed identities.

In an official statement, it was stated that KedaiSayur would use the proceeds to strengthen infrastructure farm-to-table and accelerate collaboration with upstream suppliers of agricultural products. It is hoped that this collaboration will help farmers and farms to improve the quality of their products and services.

“KedaiSayur will provide even more excellent services for consumers and also strengthen supply chain leaders from the starting point, namely the farmers and ranchers themselves through technology assistance,” said KedaiSayur CEO Adrian Hernanto.

Fund Director Kejora-SBI Orbit Fund Billy Boen also conveyed the reasons behind the company's interest in leading funding at KedaiSayur. Vertical agriculture is a huge market that has a lot of demand. Of course, this must be balanced with a strong supply chain infrastructure.

“We believe that KedaiSayur has the right ecosystem to build a network farm-to-table the strongest that is fully integrated from upstream to downstream with technology,” said Billy.

Kejora–SBI Orbit Fund is a j in the form of a venture capital company that focuses on funding early-stage startups in Indonesia. In its portfolio there are a number of startups, including Olsera, SWAP Energy, and Selleri.

Move in online groceries, KedaiSayur is a startup under the Triputra Group conglomerate. The group also has a subsidiary engaged in the agricultural industry, Triputra Agro Persada, which focuses on developing agricultural technology and Food Energy Sources, which are producers of food commodities.

Triputra Group CFO Erida Gunawan added, "We see KedaiSayur's commitment to improving the efficiency of the supply chain will have a positive impact on consumers and improve the quality of farmers in Indonesia. "Through the full support of the Triputra Group ecosystem and Kejora-SBI Orbit, KedaiSayur will be able to continue to grow rapidly," said Erida.

Since operating in 2018, it is claimed that the company's growth has increased by 5x in the past year, serving more than hundreds of thousands of customers. This achievement is also supported by acquisitions and collaborations with upstream agricultural product supply chains.

Currently the company has several business lines: KedaiMart (B2C online groceries), KedaiBiz (B2B food supplies), KedaiVenture (supply chain management and farmers).

Industry prospects online groceries

According to the IGD report, market size Grocery in Indonesia will reach $169,4 billion in 2022 with a CAGR of 5,2% in the last two years. This position confirms Indonesia as the 13th rank for the market Grocery largest in the world, and the second largest in Asia after China. Of course, this is a huge business potential, considering that the majority are still served by traditional retail businesses.

Digitization accelerated by the pandemic is a key opportunity for players online groceries. 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 business strengthening online groceries also done by local tech giants. In September 2021, Blibli officially acquired a 51 percent stake in Ranch Market, which operates 48 grocery retail stores in various cities. From there, the official Ranch Market channel is available on the Blibli application. Meanwhile GoTo also acquired a 6,74% stake in the Hypermart retail network owner, which has the potential to strengthen GoMart's business.

New players also keep popping up with different approaches. For example, Japan, which was initiated by the founder and investor of ex-Tanihub, which focuses on providing access to services online groceries for users outside Java. Until Astro came with the concept quick commerce.