Legit Group raises US$3M seed funding to further expand cloud kitchen business

Legit Group Co-founders: Sumarno Ngadiman, CEO & Co-founder (top); Monica Evanti CMO & Co-founder (left); Asrul Abraham Hendrata, Chairman & Co-founder (right)

Indonesia-based cloud kitchen company Legit Group today announced that it has raised an IDR43 billion (US$3 million) seed funding led by East Ventures, with the participation of AC Ventures.

In a press statement, the company said that it will use the fresh capital to aggressively expand locations to reach a wider customer base and to create and market new delivery-centric brands.

Legit Group currently operates three F&B brands –Pastaria, Sei’Tan and Juju Chikin– and operates from 45 distribution points. It plans to launch two more brands and expand to 135 distribution points by the end of the year

“With my experience as Founder of Eatwell Group and strategic partnerships with Ismaya Group and Yummy Corp, we are in the position to be able to use our current infrastructure to quickly expand our operations without heavy up-front investment expenditure. This allows us to widen our coverage quickly and thus lowering the delivery charges and provide a better overall experience to the customers who wish to order our products,” said Sumarno Ngadiman, CEO and Co-Founder Legit Group.

Also Read: Ecosystem Roundup: GIC invested US$94M into Bukalapak before its IPO; All about the cloud kitchen industry in Indonesia

“We have been in the F&B business for more than twenty years and we will be able to draw on our experiences and create the products that customers want with the utmost standard of food safety and handling practice,” he stressed.

Founded in February through a strategic partnership with Indonesian F&B and lifestyle giant Ismaya Group, online catering and cloud kitchen company Yummy Corp, and SME incubator GK Hebat, Legit Group said that it has grown 9.5 times since its inception. It also claimed to have experienced a 61 per cent increase in revenue from June to July alone.

As food delivery services become more popular during the pandemic, Indonesia sees rapid growth of cloud kitchen companies operating in the country. As uncovered by e27 in a special coverage, tech-savvy Millennials in the country also play a key role in driving the growth of this segment.

According to data, Indonesia has the largest food delivery service market in Southeast Asia at a market size of US$3.7 billion, accounting for 31 per cent of the total food delivery value in the region and continues to grow at 35.2 per cent annually.

Image Credit: Legit Group

The post Legit Group raises US$3M seed funding to further expand cloud kitchen business appeared first on e27.


Source link

WORLD NEWS