Fresh Factory, an Indonesian start-up that offers an integrated cold chain fulfilment and logistics service, has raised $4.15m in pre-Series A funding.
The investment round was led by SBI Ven Capital, with participation from Kyobo Securities, NTUitive, Trihill Capital, East Ventures and PT Tap Applied Agri Services. Fresh Factory plans to use the funds to scale its operations to over 100 fulfilment centres across 50 cities in Indonesia by the end of 2023.
In a statement, the company said it aims to expand to highly populated cities in Sumatra, Sulawesi, Kalimantan and secondary cities in Java. The investment will accelerate the growth of Fresh Factory’s end-to-end hyperlocal cold chain fulfilment and logistics service, and will also be used to invest in hiring talent, improving existing service offerings and expanding its fulfilments for cold chain and fresh products.
Fresh Factory was founded in 2020 by Larry Ridwan, Widijastoro Nugroho and Andre Septiano. The company provides a network of hyperlocal cold chain fulfilment centres and a smart fulfilment management system that allows businesses to have their products efficiently stored, picked, packed and delivered to customers.
The investment will help to address the increasing need for cold chain infrastructure in Indonesia as e-commerce and online groceries become more widely adopted by consumers. The cold chain market in Indonesia grew at a Compound Annual Growth Rate of 10.7% from 2016 to 2021 and is forecast to grow at 12.9% between 2021 and 2026.
Fresh Factory’s mission is to transform e-commerce fulfilment for cold chain businesses in Indonesia. The company’s innovative solutions, leadership and strategic local footprint have enabled it to attract customers and talent.
The investment will help Fresh Factory achieve bigger milestones and solidify its position as the industry standard for cold chain fulfilment. 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.
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 saw a 10x increase in its annualised Gross Merchandise Value (GMV) and doubled its client base.
SBI Ven Capital, the lead investor in the funding round, said that Fresh Factory has identified an essential component needed in Indonesia’s logistics ecosystem. The company’s service offerings will address the heightened demand for hyperlocal cold chain fulfilment and logistics services from consumers and businesses alike.
The investors are excited to partner with Fresh Factory in its vision to build the company and transform the landscape of Indonesia’s logistics sector.
