HappyFresh Pockets Series D Funding 940 Billion Rupiah, Translucent Valuation of 2,8 Trillion Rupiah

Service developer grocery online marketplace HappyFresh managed to secure a series D funding of $65 million or equivalent to 940 billion Rupiah. This round was led by Naver Financial Corporation and Gafina BV. Some of the participating investors were Mirae Asset-Naver Asia Growth Fund and Z Venture Capital.

Previously, the company last announced series C pendanaan funding in April 2019 for $20 million. According to team calculations DailySocial, from all rounds that were successfully closed HappyFresh brought the company's valuation to $200 million.

Regarding the focus of funding this time, HappyFresh CEO Guillem Segarra revealed that his team is working hard to improve the company's operations in various markets and maintain the company's quality and safety standards. "We are still at the beginning of the journey and with all the support received, are very excited for the adventures ahead," he said.

In the previous discussion together DailySocial, Managing Director of HappyFresh, Filippo Candrini has also revealed that the company's current focus is on being able to improve the user experience in online grocery shopping using the approach personal shopper. In addition, the team will also continue to carry out local expansion to cities tier 2 and 3 in Indonesia.

“We don't intend to be great app, but we want to be an app Great Dalam Grocery for our customers and partners,” added Candrini.

Present in Indonesia since 2015, HappyFresh has expanded its business to Malaysia and Thailand. The company claims to have experienced 10 to 20 times traffic growth. In the local market, this service is also available in 11 cities throughout Indonesia, including Greater Jakarta, Bandung, Surabaya, Malang, Semarang, Makassar, and Bali.

Industry e-grocery is said to be increasing rapidly throughout Asia, especially Southeast Asia. The retail market for this industry is reported to have reached $350 billion supported by rapid adoption and fundamental changes in consumer behavior.

“We are seeing major changes in customer behavior; retention rate and frequency have increased significantly while basketball size overall has been growing consistently. We attribute this to a major shift in wallet share from offline to online, which will remain,” said Guillem.

In Indonesia, the system offline still dominate

However, behind the shopping penetration figures online increasing, market offline still dominate food industry in Indonesia. A research from LEK Consulting about industry online groceries revealed that 82% of total sales of food ingredients are still controlled by traditional markets.

This is in contrast to what happened in China and South Korea where the market offline only accounted for 30% and 19% of total grocery sales in 2019.

However, along with the increasing availability of services in various regions and people who are well educated from popular consumer applications, it is not impossible that statistics e-grocery will increase exponentially in the future.