Segari, a grocery social commerce start-up focusing on providing fresh produce to consumers, has raised US$16 million in its Series A funding.
In less than 12 months of operation, the Company has achieved over 20 times growth in users, a number of platform transactions, and revenues.
The round was led by GoVentures with participation from Susquehanna International Group (SIG) and a cohort of strategic ecosystem leaders from Alfamart (one of the largest retailers in Indonesia), Gunung Sewu Group (one of the largest conglomerates in Indonesia, focusing on agriculture and food) and Intrinity Capital, which is affiliated with Gulaku.
Beenext, AC Ventures, and Saison Capital, who are existing investors from Segari’s seed round, also participated in this latest round.
Launched in 2020, Segari is a B2C social commerce grocery start-up, delivering fresh produce to consumers across Indonesia. Customers place orders via Segari’s website or mobile app, and deliveries will be made within 15 hours from farm to table. A full range of groceries are available across Fruit, Vegetables, Meat, and Staples categories.
Segari sources the majority of its fresh produce directly from farmers in Java and Sumatra, ensuring high quality, fresh produce, while also supporting local farming communities.
Furthermore, with its decentralized warehouses and strong agent network that have deep relationships in the community, Segari removes the middleman, resulting in faster delivery times and lower costs, which are passed on to customers.
“The current COVID-19 pandemic has been a tremendous catalyst for growth for the Indonesian e-grocery market. More consumers are shifting to online purchasing, in particular for their everyday essential grocery shopping. Yosua, Farand, and Farandy have demonstrated outstanding execution to grow not only very quickly but also maintain best-in-class unit economics over the last year. They are well-positioned to continue solving one of Indonesia’s most pressing problems – the complex, multilayered agriculture supply chain,” said Aditya Kamath, Partner, Go-Ventures.
Strengthening the supply chain – from farmers to consumers
Segari will be using this latest round of funding to strengthen its supply chain, ensuring produce moves from farmers to consumers more efficiently. In order to do so, Segari plans to expand its team, hiring aggressively in areas such as operations, supply chain, technology, and marketing.
“The agriculture supply chain is one of the most complex problems in Indonesia, with multiple layers between farmers and consumers. We feel we can make a huge impact – enabling consumers to quickly receive better quality and lower cost groceries, while simultaneously helping farmers to receive fair prices for their produce. Fortunately, our users feel the same way. With this latest injection of funding, we aim to continue our strong growth and make a real impact for consumers and farmers,” said Yosua Setiawan, CEO of Segari.
“Segari has demonstrated powerful execution in their vision of replacing traditional supermarkets and creating convenience and value for consumers in Indonesia. Furthermore, Segari’s community group buying model helps establish a strong moat. The platform can reach consumers and households with lower acquisition and logistics costs, creating a more favorable set of unit economics. Since the beginning, ACV is proud to have been a part of Segari’s journey and excited to watch Segari revolutionize the e-grocery space,” said Adrian Li, Co-Founder & Managing Partner at AC Ventures.
Yosua targets for Segari to achieve a 10-fold growth over the next 18 months.
Yosua previously worked with the Boston Consulting Group and Traveloka. He is supported by Chief Operating Officer, Farand Anugerah, who attended Harvard Business School and has work experience from Grab, as well as Chief Technology Officer Farandy Ramadhana, who has worked as a software engineer at Amazon, Google, and Moka.