Astro, a Jakarta-based quick commerce startup, on Monday announced the completion of a $60 million Series B funding round led by investment firms Accel, Citius and Tiger Global Management.
Existing investors, including AC Ventures, Global Founders Capital, Lightspeed, and Sequoia Capital India, also participated in the round. The company, which was launched in September 2021, has now secured $90 million in funding.
The announcement confirms a DealStreetAsia report in March on Astro’s fundraising.
Astro offers over 1,500 daily essentials and promises 15-minute grocery delivery in almost 50 locations near Jakarta. It recently launched private label products such as coffee and bread.
Announcing its Series B round on Monday, the startup said it plans to use the capital to expand its customer base, product capabilities and talent pool.
Astro’s latest financing comes less than four months after it raised a $27 million Series A round at the beginning of February. It coincides with a shift in the funding landscape caused by macroeconomic pressures, including rising interest rates, and a broad sell-off in the public markets.
“We have been very mindful and purposeful from day one about how we execute and not [to achieve] growth at all costs. This allows us to be efficient and achieve quality growth. As a result. our investors, who have invested in similar business models across the world, have a strong conviction after looking at our performance,” Astro co-founder and CEO Vincent Tjendra told DealStreetAsia.
The startup claims to have grown its revenue more than 10 times since its last funding round. It has also increased its workforce to more than 200 people.
According to Singapore-registered Astro’s regulatory filings, its Series B shares were priced at $995.80 apiece, up nearly 175% from the Series A1 price of $362.27 apiece.
It has so far received nearly $50 million in equity funding as part of the Series B round—startups may receive capital in tranches from their investors—showed its latest filing on Friday. Accel India and Tiger Global contributed $10 million each, while Citius has sent $5 million so far.
Online grocery spending in Indonesia remains low at approximately 4% of the overall grocery market, Astro pointed out in its funding announcement. Meanwhile, e-commerce has a much higher digital penetration at 10%. The archipelago’s online grocery market could potentially be worth $5-6 billion by 2025, according to research by L.E.K Consulting.
Astro is one of several quick commerce startups in Indonesia but its rapid fundraising—it is one of the fastest startups in Southeast Asia to close a Series B round after launch—could give it an edge over rivals.
Other quick commerce startups in the country include Dropezy, which has raised $6.2 million in funding so far, Bananas ($1.5 million) and Radius ($500,000). Dropezy is understood to be in the process of raising a sizable Series A funding round.
These startups are betting on changes in consumer habits brought about by the pandemic to continue expansion and seek more capital. However, recent moves by their global counterparts suggest the quick commerce sector may be forced to pace itself.
Two of the largest apps in the space, Turkey’s Getir and Berlin-based Gorillas, recently announced plans to slow down their heady expansion.
Getir, which was valued at nearly $12 billion after a funding round in March this year, is cutting 14% of its staff globally. The move is understood to impact more than 4,400 people.
Meanwhile, Gorillas announced it would let go about 300 employees and withdraw from several markets, citing the need to reach profitability in the long run.