Indonesian cold chain fulfillment startup Fresh Factory has announced raising $4.15 million in a pre-Series A funding round anchored by SBI Ven Capital.
Fresh Factory said it will use the fresh capital to scale its business to over 100 fulfillment centres across 50 Indonesian cities by the end of this year. The expansion will focus on Sumatra, Sulawesi, Kalimantan, and Java.
The investment will also be used to hire talent, improve service offerings, and drive logistics cost efficiency.
Per the announcement, SBI Ven Capital led the round through its joint fund with Kyobo Securities and NTUitive. The round was also participated by existing investors East Ventures and Trihill Capital and new investor PT Tap Applied Agri Services.
The funding announcement comes less than a year after the Indonesian startup received $4.5 million in initial funding from East Ventures.
Fresh Factory was founded in 2020 by Larry Ridwan (Chief Executive Officer), Widijastoro Nugroho (Chief Commercial Officer), and Andre Septiano (Chief Financial Officer).
It claims to have grown from 20 fulfillment centres to over 40 across 22 cities in Indonesia and has expanded its service offering to include retail fulfillment orders alongside direct-to-consumer fulfillment orders.
The firm has also reported a 10x increase in its annualised gross merchandise value (GMV) and doubled its client base to include large enterprises such as Danone and Sirclo and growing companies such as Eden Farm and Kin Dairy Fresh Milk.
The latest funding comes as Indonesia’s cold chain market grew at a CAGR of 10.7% from 2016 to 2021 and is expected to grow at 12.9% between 2021 and 2026.
“Fresh Factory has identified an essential component needed in Indonesia’s logistics ecosystem. Its service offerings will address the heightened demand for hyperlocal cold chain fulfillment and logistics services from consumers and businesses alike,” said Ryosuke Hayashi, CEO of SBI Ven Capital.
DealStreetAsia reported that Indonesia’s logistics tech sector will likely remain somewhat insulated from the so-called funding winter and continue to see investment momentum and acquisition activities in 2023.
Defying the funding slowdown, the logistics tech sector showed resilience by scoring a fair number of deals in 2022 with players like Waresix, Shipper, McEasy, Deliveree, and Paxel collectively raising nearly $150 million.