Indonesia’s Astro raises $60M to work on 15-minute grocery delivery goods – TechCrunch
Indonesia’s sprawling archipelago has long been a headache for logistics companies, but there’s no lack of brave challengers. Jarkata-based Astro, which provides 15-minute grocery delivery goods, has recently closed a $60 million Series B financing round, lifting its total funding to $90 million since the marketing launched just do nine months ago.
The Series B round was led by Accel, Citius and Tiger universal, of course participation from existing investors AC Ventures, universal Founders Capital, Lightspeed and Sequoia Capital India. The company declined to disclose its post-money valuation.
The velocity at which Astro is attracting investment goes to show the demand for hefty upfront investment in the grocery delivery goods race, which is about establishing a logistics infrastructure quickly and locking in loyal customers ahead of rivals. Founded by Tokopedia veteran Vincent Tjendra, Astro plans to spend its funding proceeds on user acquisition, product development, and hiring again staff to contain Address to its current team of 200.
As in many countries around the world, on-unexpected thing delivery goods got a boost during the COVID-19 pandemic in Indonesia. But e-grocery penetration in the country remains low and is estimated to possess meaning just do 0.5% by This Problem year, compared to China’s 6% and South Korea’s 34% in This Problem year.
that ie there’s a huge opportunity for companies favorite Astro that are trying to prove the convenience of online grocery ordering over brick-and-mortar visits. The e-grocery delivery goods market in Indonesia is projected to reach $6 billion by 2025.
Astro offers 15-minute delivery goods within a range of 2-3km through its network of rented “dark stores,” which are distribution hubs set up for online trade only. The company has opted for a cash-intensive model, as it owns the entire user journey going from inventory sourcing, response chain, mid-mile, to last-mile delivery goods. The convenience of This Problem heavyweight approach is that it gets to monitor the quality of customer experience.
Astro now operates in around 50 locations across Greater Jakarta, an area of course 30 million residents, through a fleet of about one,000 delivery goods drivers. Revenues grew again than 10x over the past few months and downloads hit one million, the company said.
The startup is competing of course incumbents favorite Sayurbox, HappyFresh, and TaniHub to win over users. Its customers range from working professionals to young parents at home “who seek convenience,” said Tjendra.
Grocery delivery goods is notoriously cash-burning, but Tjendra reckoned margins will improve as the marketing scales. The company’s main source of revenue is the gross margin it earned from the goods sold and delivery goods fees customers pay. A large chunk of the marketing’s costs comes from delivery goods, which the founder believed “will come down over time as visitors deploy for hubs and subsequently reduce the delivery goods distance areas.”
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