JAKARTA (TheInsiderStories) – An Indonesian startup that empowers vegetable sales, Kedai Sayur, has closed a US$4 million new round of funding. The round was led by East Ventures – Southeast Asian most active venture firm – with participation from Indonesia’s SMDV, Triputra Group, and Multi Persada, the company has announced today (08/23).
The fresh fund will accelerate the company to onboard more vegetable hawkers and retailers to be their partner, locally called Mitra Sayur, further extend their networks of sources and suppliers, as well as to develop its technology.
Kedai Sayur was established with the mission to bring the benefits of the digital economy for Indonesia’s vegetable hawkers by providing the best quality and price of fresh commodities for their selling products. In Indonesia, most hawkers are still struggling to source competitive fresh produce due to the long supply chain that adds costs up to 2-3 folds and lower the freshness quality of the food.
Since its inception, the 9-month-old startup has enjoyed a notable growth number of Mitra Sayur by 520 percent. The company’s number of GMV also has grown in a whopping number of 600 percent.
To date, the company provides more than 300 products in their distribution center and all is accessible for the Mitra Sayur that joined Kedai Sayur through its mobile apps.
“From day one, we aim to create a tangible impact for all the fresh produce hawkers and allow them to enjoy a higher quality of life. We are delighted to witness the constantly increasing purchase value experienced by all of our Mitra Sayur, and how most of them can even double the amount within the first six months, said co-founder and CEO of Kedai Sayur, Adrian Hernanto.
“This is only the beginning of our journey to support all hawkers going forward, and we are grateful to have the trust of our investors and partners,” he adds.
On May, Kedai Sayur also announced that it had secured $1.3 million of seed funding East Ventures. The investment will accelerate the company’ mission to onboard more vegetable hawkers as its partner.
In 2017, the total consumption of fresh commodities in the Great Jakarta, Bandung and Surabaya regions is estimated to reach $8.4 billion. So far, according to the company, most of the sales and distribution of fresh vegetable products still rely on traditional distribution networks called ‘vegetable artisans’.
There are at least two types of vegetable traders in Indonesia, namely, first, a typical stall style that provides fresh products for customers who come and the other is the style of hawkers who use hand carts and sell their fresh products door to door.
While most customers rely on vegetable vendors to get their daily fresh produce, peddlers struggle because of the complex nature of getting high-quality fresh products but are affordable from one source, it said.
Looking at the long-standing distribution of vegetable products, Kedai Sayur intends to become an aggregator that works with several farmers and partners directly for the source and distribution of products.
In addition, Kedai Sayur also offers its partners with a new type of delivery vehicle called “Si Komo” (short for Kedai on Mobile) that can help them reach customers from house to house in a more efficient way.
Vehicles that are uniquely designed, according to the company, can be changed and used for other services such as delivering packages or selling food, which allows them to have additional income in addition to selling fresh produce.
Kedai Sayur is an Indonesian startup with a strong mission to bring technology inclusion for vegetable hawkers in the country and improve their life quality. With a strong ecosystem of farmers, assortment facility, and distribution network, Kedai Sayur builds efficient networks of daily produce distribution and open the access for the vegetable hawkers to the best quality and price of fresh produce in one click away.
While East Ventures is an early-stage venture fund focused on Southeast Asia and Japan. Over several years, East Ventures has invested in hundreds of companies in Indonesia, Singapore, Japan, Malaysia, Vietnam, and Thailand. The majority of East Ventures’ portfolio firms have been able to raise follow-on financing rounds.
East Ventures has a strong track record in developing pan-Asia tech-ecosystems and backing startups in their early days. Success cases include companies such as Tokopedia, Traveloka, Mercari, Warung Pintar, Disdus (acquired by Groupon), Kudo (acquired by Grab), Loket (acquired by Gojek), Tech in Asia, Omise, IDN Media, Ruangguru, MokaPOS, ShopBack, Fore, and CoHive.
Written by Lexy Nantu, Email: firstname.lastname@example.org