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Indonesian agritech startup Kedai Sayur bags USD 4 million in funding from East Ventures

KrASIA 2019-08-23 13:09:37

Indonesian agritech startup Kedai Sayur raised USD 4 million in a new round of funding led by East Ventures and involving SMDV, Triputra Group, and Multi Persada.

In its official statement, Kedai Sayur said the fresh funding would be used to expand “Mitra Sayur,” the company’s network of vegetable hawkers and retailers. The startup will also expand its network of sources and suppliers of fresh vegetables, as well as improve its tech capabilities.

This investment comes only three months after Kedai Sayur raised USD 1.3 million in a seed round in May, also led by East Ventures, indicating that the startup has been showing promising growth. Since its inception nine months ago, the company’s Mitra Sayur network has grown by 520% while its GMV has grown by 600%, according to a company statement.

Kedai Sayur, which translates to “vegetable kiosk,” wants to digitize the way traditional vegetable hawkers do business. In Indonesia, most hawkers struggle to source competitive fresh produce due to long supply chains that increase costs by up to three times. The process also impacts the produce’s freshness and quality.

With its technology, the startup simplifies the supply chain by connecting hawker partners with farmers directly. Partners can browse for fresh commodities through Kedai Sayur’s app, and then pick up the produce at the nearest drop-off point. Kedai Sayur also offers delivery vehicles called Si Komo, which stands for “Kedai on Mobile,” to replace conventional vegetable carts. The new vehicles help partners reach their customers door-to-door in a more convenient way. Kedai Sayur also provides financing programs for partners who have limited capital to purchase the vehicle.

To date, the company has more than 300 products in its distribution center.