Fresh Factory Raises Pre-Series A Funding of IDR 62 Billion Led by SBI Ven Capital

Solution provider startup fulfillment cold chain Fresh Factory announced that it has closed its pre-series A funding of $4,15 million (over 62 billion Rupiah). This round was led by SBI Ven Capital via join investment with Kyobo Securities and NTUitive, as well as participation from previous investors, such as East Ventures, Trihill Capital, and a new investor, PT Tap Applied Agri Services.

This funding was achieved 9 months after the announcement of funding early stage round $4,5 million led by East Ventures in June 2022.

This fresh fund will be used to accelerate the growth of Fresh Factory in order to support the achievement of targets as a local company that provides services from upstream to downstream in logistics and cold chain fulfillment with a hyperlocal strategy.

SBI Ven Capital CEO Ryosuka Hayashi said, Fresh Factory succeeded in identifying the most essential components in the logistics ecosystem in Indonesia. The services they have can accommodate the high demand for hyperlocal services cold chain fulfillment, as well as requests for logistics services from customers and businesses.

"We are very pleased to be able to partner with Fresh Factory to support their vision of building a company and transforming the landscape of the logistics sector in Indonesia," explained Hayashi in an official statement, Monday (3/4).

"[..] With the support of a number of well-known investors, Fresh Factory will continue to achieve even greater achievements and make our position even more solid as a standard in the industry cold chain fulfillment," added Fresh Factory Founder & CEO Larry Ridwan.

Larry continued, the fresh funds will be used to expand the network to more than 100 service centers fulfillment in 50 cities throughout Indonesia by the end of 2023. The plan is for distribution points fulfillment will penetrate cities with high populations in Sumatra, Sulawesi, Kalimantan, and second-tier cities in Java.

In addition to expansion, the company will recruit more top talents, improving service quality Existing, and encourage logistics efficiency by expanding the network fulfillment for fresh products in service cold chains provided by the company.

Fresh Factory Growth

Need for infrastructure services cold chains in Indonesia continues to increase in line with increasingly widespread use E-commerce and online groceries. Market cold chains in Indonesia grew at a CAGR of 10,7% from 2016 to 2021, and is estimated to grow 12,9% between 2021 and 2026.

Founded in 2020 by Larry Ridwan (CEO), Widijastoro Nugroho (CCO), and Andre Septiano (CFO), Fresh Factory provides a hyperlocal network cold chain, fulfillment, and smart management system for fulfilment which allows business people to store, pick, package their products and send them directly to customers through the facilities owned by the Fresh Factory.

Fresh Factory targets logistics services cold chains for food and beverage (F&B) products, medicines, beauty and skin care products, as well as some chips. For this reason, Fresh Factory simplifies all aspects of logistics cold chains, starting from operating the service fulfilment micro scale to support product delivery to the final destination (last mile) as well as encouraging digitalization at an early stage (first mile) where the product is sent from the client to the center fulfillment FreshFactory.

Since its initial launch, Fresh Factory has grown from 20 service centers fulfillment to more than 40 service centers fulfillment in 22 cities in Indonesia, expanding services to retail orders, in addition to services for direct orders to customers (direct-to-consumer).

In the past year, GMV Fresh Factory transactions are claimed to have increased 10-fold and the number of clients has doubled. Users come from various large-scale companies, including Danone, Sirclo, Eden Farm, and Kin Dairy Fresh Milk.