Fresh Factory, an Indonesian startup that provides an end-to-end hyperlocal cold chain fulfilment and logistics service, has raised $4.15 million in pre-Series A funding.
The investment was led by SBI Ven Capital through its joint fund with Kyobo Securities and NTUitive, with participation from existing investors East Ventures and Trihill Capital, as well as new investor PT Tap Applied Agri Services.
Fresh Factory plans to use the funds to expand to over 100 fulfilment centres in 50 Indonesian cities by the end of 2023, including highly populated cities in Sumatra, Sulawesi, Kalimantan and secondary cities in Java.
The investment will also be used to hire talent, improve service offerings and drive logistics cost efficiency.
The startup was founded in 2020 and provides a network of hyperlocal cold chain fulfilment centres and a smart fulfilment management system that allows businesses to store, pick, pack and deliver products efficiently.
The company’s focus is on transforming e-commerce fulfilment for cold chain businesses in Indonesia.
The need for cold chain infrastructure is growing in Indonesia as e-commerce and online groceries become more widely adopted by consumers.
The country’s cold chain market grew at a Compound Annual Growth Rate (CAGR) of 10.7% from 2016 to 2021 and is forecasted to grow at 12.9% between 2021 and 2026.
“Fresh Factory has identified an essential component needed in Indonesia’s logistics ecosystem. Its service offerings will address the heightened demand for hyperlocal cold chain fulfillment and logistics services from consumers and businesses alike. We are excited to partner with Fresh Factory in their vision to build the company and transform the landscape of Indonesia’s logistics sector,” said Ryosuke Hayashi, CEO of SBI Ven Capital.
Since its launch, Fresh Factory has grown from 20 fulfilment centres to over 40 fulfilment centres across 22 cities in Indonesia, and has expanded its service offering to include retail fulfilment orders alongside direct-to-consumer fulfilment orders.
Over the past year, Fresh Factory has seen a 10x increase in its annualised Gross Merchandise Value (GMV) and doubled its client base. The company services a wide range of large enterprises including Danone and Sirclo, and growing companies such as Eden Farm and Kin Dairy Fresh Milk.
“Fresh Factory aims to address the cold chain logistics for food & beverage products, pharmaceuticals, beauty and skin care products, and certain electronics chips. To do so, the team streamlines the entire cold chain logistics starting from operating micro fulfilment centers in last-mile to eventually digitising first-mile. We are excited about Fresh Factory’s future, and we are pleased to have the opportunity to continue supporting the founders,” said Alwyn Rusli, Investor at Trihill Capital.