Fresh Factory, an Indonesia-based integrated cold chain fulfilment and enabler startup, has on Monday announced it has raised $4.15 million in pre-Series A funding.
Fresh Factory said in a statement that the round was led by SBI Ven Capital through its joint fund with Kyobo Securities and NTUitive.
The round also saw participation from existing investors East Ventures, Trihill Capital, and new investor, PT Tap Applied Agri Services.
According to the statement, Fresh Factory will utilize the funds to scale to over 100 fulfilment centers across 50 Indonesian cities by the end of 2023, expanding to highly populated cities in Sumatra, Sulawesi, Kalimantan and secondary cities in Java.
The funding will also accelerate Fresh Factory’s growth Indonesia’s end-to-end hyperlocal cold chain fulfilment and logistics service provider.
The organization will also invest in hiring talent, improving existing service offerings, and expanding its fulfilments for cold chain and fresh products to further drive logistics cost efficiency.
“Fresh Factory’s mission is to transform e-commerce fulfilment for cold chain businesses in Indonesia,
“Our innovative solutions, leadership and strategic local footprint have enabled us to attract customers and talent,” said Larry Ridwan, Founder and Chief Executive Officer of Fresh Factory.
With its notable roster of investors, he said Fresh Factory will continue to achieve bigger milestones and solidify its position as the industry standard for cold chain fulfilment.
Founded in 2020 by Larry Ridwan, Widijastoro Nugroho (Chief Commercial Officer), and Andre Septiano (Chief Financial Officer), Fresh Factory provides a network of hyperlocal
cold chain fulfilment centers and a smart fulfilment management system that allows businesses to have their products efficiently stored, picked, packed, and delivered to customers.
According to the statement, there is an increasing need for cold chain infrastructure in Indonesia as e-commerce and online groceries become more widely adopted by consumers.
Indonesia’s cold chain market grew at a compound annual growth rate (CAGR) of 10.7 percent from 2016 to 2021 and is forecasted to grow at 12.9 percent 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, Chief Executive Officer of SBI Ven Capital.
Avina Sugiarto, Partner at East Ventures, said the firm is pleased to continue to support Fresh Factory in its growth journey, as the team makes significant strides to enable more efficient and accessible cold chain logistics across Indonesia.
“With its expertise in cold chain fulfilment, Fresh Factory has successfully forged valuable partnerships and collaborations across East Ventures’s ecosystem,
“We are delighted with the continued innovation and growth of the company as the team expands its footprints and network of clients,” she added.
Alwyn Rusli, Investor at Trihill Capital, said that Fresh Factory aims to address the cold chain logistics for food and 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 digitizing first-mile,
“We are excited about Fresh Factory’s future, and we are pleased to have the opportunity to continue supporting the founders,” he said.
Since its launch, Fresh Factory has grown from 20 fulfilment centers to over 40 fulfilment centers across 22 cities in Indonesia, and expanded their service offering to include retail fulfilment orders alongside direct-to-consumer fulfilment orders.
Over the past year, Fresh Factory saw a 10 times increase in its annualized gross merchandise value (GMV) and doubled its client base.
Today, Fresh Factory services a wide range of large enterprises including Danone and Sirclo, and growing companies such as Eden Farm and Kin Dairy Fresh Milk.