East Ventures Leads Seed Funding for F&B Company "Legit Group"

The local F&B firm Legit Group announced $3 million seed funding (worth Rp43 billion) led by East Ventures with participation from AC Ventures. Legit Group will use the funds to launch two new brands focused on delivery services with marketing; and expand operations to 135 distribution points by the end of this year.

Legit Group is a multi-brand cloud kitchen conceptor and operator founded by Sumarno Ngadiman, Monica Evanti, and Asrul Abraham Hendrata in early February 2021. Sumarno was previously the founder of Eatwell Group, the owner of a restaurant group network that operates the Ta Wan, Ichiban Sushi, Warung Solo, and Eat and Eat.

Currently, Legit Group operates three brands, Pastaria, Sei'Tan and Juju Chikin which has 45 distribution points. They designed the business by utilizing delivery solutions generating big opportunity during this pandemic.

According to data compiled by Statista, Indonesia is the largest food delivery service market in Southeast Asia with a value of $3.7 billion and accounts for 31% of total deliveries in the region. This value is recorded to grow continuously by 32.5% every year.

In the midst of a pandemic situation, the majority of the global community experienced changes in their consumption behavior of F&B products. Consumer behavior that tends to reduce their intensity to eat and drink out (dine-in) has created great opportunities for F&B businesses that focus on delivery services.

Legit Group's Co-Founder & CEO, Sumarno Ngadiman said, "The DNA of an F&B business that prioritizes delivery is very different from that of an offline or traditional restaurant business, which is why many traditional restaurants find it difficult to compete in the delivery service market.