Fresh Factory has multiplied its fulfillment service center of 40 points spread to 22 cities in Indonesia and elevated the GMV tenfold last year.
Heaptalk, Jakarta — Fresh Factory, A cloud chain fulfillment startup, announced has secured its Pre-Series A funding round of US$4.15 million, or nearly Rp62.2 billion. The new capital injection has managed to seize after this startup announced its seed round worth US$4.5 million from East Ventures as of June 2022.
SBI Ven Capital leads this round through a joint investment method with Kyobo Securities and NTUitive. On the other hand, several existing investors, spanning East Ventures, Trihill Capital, and a new investor, namely PT Tap Applied Agri Services, were also involved in this funding round.
Fresh Factory will allocate its fresh injection to expedite its business growth to attain its goals of providing end-to-end logistics and cold chain fulfillment solutions through the hyperlocal business strategy. On the other hand, the company plans to hire new talented employees, boosting logistics efficiency through the fulfillment expansion network for the fresh products in the cold chain service.
Simultaneously, this startup will utilize the fund to broaden its network to over 100 fulfillment service center points throughout 50 cities in Indonesia by the end of 2023. Fresh Factory will focus on expanding to cities with high populations, such as Sulawesi, Kalimantan, and second-tier cities in Java.
Fresh Factory’s Chief Executive Officer, Larry Ridwan, “With the strategic backing of the leading investors, we will continue to reach a more significant business accomplishment and reinforce our positions as the nation’s standard of the cold chain fulfillment industry in the archipelago.”
The demand for a cold chain fulfillment infrastructure continues to increase in Indonesia, aligned with the rapid growth of e-commerce and the online groceries sector. The company observed a cold chain market in the nation has uplifted, with a Compound Annual Growth Rate (CAGR) of 10.7% in 2016 – 2021 and is forecasted to climb to 12.9% in 2021 – 2026.
Responding to this estimation, Larry affirmed the company would transform fulfillment services devoted to the e-commerce ecosystem in the cold chain business in Indonesia. Larry claimed the company had attracted customers and excellent talents by implementing a hyperlocal strategy.
The CEO of SBI Ven Capital, Ryosuke Hayashi, considered this startup to have managed to identify the essential components needed in Indonesia‘s logistics ecosystem. The Fresh Factory’s proffered service could accommodate the tremendous demand for hyperlocal cold chain fulfillment and logistics services requests from customers and entrepreneurs.
Since its inception, this cold chain fulfillment startup has augmented its fulfillment service center from 20 to 40 service points, spread to 22 cities in Indonesia. Despite appending its service centers to multiple regions, Fresh Factory has expanded its services into retail order and direct-to-customer services.
Fresh Factory Gross Merchandise Value (GMV) has flourished tenfold in the last year and doubled its clients’ number. During its operations, this startup has served several well-known companies, including Danone, Sirclo, Eden Farm, and Kin Dairy Fresh Milk.
