Celebrating Its First Anniversary, Segari Announces Series A Funding Worth of 227.6 Billion Rupiah Led by Go-Ventures
A series of investors were involved, including SIG, Alfamart, Gunung Sewu Group, Intrinity Capital, and the previous VCs
After 12 months of operation, Segari online grocery startup announced Series A follow-on funding. The value reached $16 million or equivalent to 227.6 billion Rupiah. This round was led by Go-Ventures with the participation of SIG, Alfamart, Gunung Sewu Group, and Intrinity Capital.
Participated also in this round the previous investors, including Beenext, AC Ventures, and Saison Capital. In total, according to our source, Segari has scored an investment fund of around $18 million.
The company will use the fresh funds to strengthen infrastructure, ensuring a more efficient process from farmers to consumers. In addition, they also plan to buckle up and hire more talents in various fields, including operations, technology, and marketing.
Through its solutions, Segari is committed to simplifying complex distribution chains by leveraging technology and empowering communities as partners in more efficient sales and distribution.
"The agricultural distribution chain is one of the most complex problems in Indonesia. There are still many layers from farmers to agricultural products to consumers," Yosua Setiawan, Co-Founder & CEO of Segari said.
He continued, "We expect to have a positive impact where consumers can receive quality food ingredients faster and at lower costs. On the farmer's side, we also help them to receive a fair price for the products they sell."
Through the application or website, users can order fruit, vegetable, meat and other primary food products. Within only 15 hours, fresh food products will reach consumers from farmers. Most of the products are sourced directly from partner farmers in Java and Sumatra.
With a decentralized approach to warehouses and a network of sales partners, Segari claims to be able to provide faster delivery times, better product quality, and lower costs for customers.
Agro startup in Go-Ventures
Segari is Go-Ventures' 16th portfolio. Previously, the Gojek-owned venture capitalist also invested in several startups with similar business models, including eFishery (Fresh), FoodMarketHub, and KitaBeli.
Through the GoMart feature, Gojek is indeed trying to tighten its online grocery vertical. Its capabilities provide ordering systems, payment infrastructure, and delivery services. In terms of products, Gojek has collaborated with several companies and startups, including Alfamart and Sayurbox. Segari's entrance clearly has integration potential into GoMart.
Regarding the Segari investment, Go-Ventures' Partner, Aditya Kamath said, "The pandemic has become a catalyst for the growth of the online market (e-grocery) in Indonesia. More consumers are shifting to online purchases, especially for daily needs. During last year, Joshua, Farand Anugerah (COO) and Farandy Ramadhana (CTO) have shown outstanding execution, Segari is growing very fast and still maintaining the best economic unit in the sector."
Indonesia's online grocery
Social restrictions due to pandemic have become a separate momentum for online grocery players in Indonesia. In addition to new players keep arising, old players and superapps are also strengthening its coverage in this market.
According to the Asia Pacific IGD analysis, as of 2019 the overall grocery market size has reached $140.2 billion. It is projected to grow to $169.4 billion by 2020 at a CAGR of 5.2% in two years -- making the country the 13th largest grocery market in the world. Online grocery alone is considered to have an increasing percentage. Indeed, there are dozens of digital players trying their luck to acquire the market.
However, the digital platform is still at a very early stage. Regarding the coverage, almost all services are still focused on tier-1 cities. The biggest players like HappyFresh still cover the Greater Jakarta area, Surabaya, and several other big cities. Meanwhile, Segari as a newcommmer still serves a limited area in Jadetabek.
–Original article is in Indonesian, translated by Kristin Siagian