KedaiSayur Announces Fresh Funds of 50 Billion Rupiah

KedaiSayur (PT Kedai Sayur Indonesia) announced that it has received funding in bridge round worth $3,5 million or around 50 billion Rupiah. It was not announced specifically who the investors involved were. In his statement, KedaiSayur also confirmed as a technology-based wholesale company under the auspices of the Triputra Group.

Concept bridge round  this is basically an investor's participation in a startup funding to welcome the closing of the next series. Generally, the distribution of new equity is delivered after the funding target in a certain series is met, adjusted according to the agreed formula and based on the value disbursed by each investor. In addition, in the agreement there is an agreed deadline regarding the closing of the next series.

Previously their competitors, namely Vegetablebox, also announced the acquisition of funds in bridge round from Metrodata.

The fresh funds obtained by KedaiSayur will be focused on supporting business acceleration and strengthening the technology in it. This is in line with growth which is being worked on -- until the end of 2021 Vegetable Shop claims to have achieved 24x business growth compared to the previous year through the KedaiMart application.

"With our commitment as a provider of Supply Chain Management To meet the supply of food ingredients from upstream to downstream, KedaiSayur continues to improve service quality and always provides added value for all parties involved. Because customer satisfaction is the key in the development of our business, so we will continue to make efforts to create operational excellence," said KedaiSayur CEO Adrian Hernanto.

Adrian added, in addition to providing convenience in meeting people's food needs through applications and dashboards for ordering, currently KedaiSayur's focus is also on slowly developing land digitization. "Through monitoring using technology, we can do forecasting and later each region will be able to have sufficient data to increase their business scale which is supported by the transparency of the data generated through the digitization process,” he said.

had time to do pivot due to pandemic

In May 2020, KedaiSayur announced change in business focus become a food delivery service online. Previously, the company served B2B consumers such as hotels, restaurants and cafes, and vegetable vendors who wanted to supply food ingredients for selling.

The reason is that the food product market has begun to change since the spread of Covid-19 began in early March. Demand from hotels, restaurants and cafes fell by 50%. Whereas previously the growth of this business was more than 20% per month. Meanwhile, at the same time, demand from vegetable growers and household customers has increased significantly. It is on this basis that the company is confident to take business pivot decisions.

On the other hand, operational restrictions on the wholesale market and local markets disrupt the distribution pattern of fresh food products in Indonesia. This condition has an impact not only on consumers who cannot shop at the market, farmers also lose the medium to distribute their harvests.

Until finally in February 2021, KedaiSayur released the KedaiMart application to meet daily food needs with the concept of "supermarkets in your pocketPreviously, apart from the application itself, users could also order KedaiSayur products through Tokopedia and Blibli.

The market is growing, the competition is getting fiercer

Since its establishment in 2018, KedaiSayur has been twice got funding, with a total of $5,3 million supported by a number of investors such as East Ventures, SMDV, Triputra Group, and Multi Persada Nusantara. Now they have more than 5 thousand partners from vegetable traders, HORECA, and wholesale markets. They also cooperate with 250 farmers who provide product supplies to meet their needs.

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. last September 2021, online marketplace Official Blibli acquired 51% stake in Rach Market which operates 48 retail stores Grocery in various cities. Recently, initial integration has also started, starting with the creation of the official Ranch Market channel 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 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.