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I Made Sentana · · 2 min readFresh Factory eyes $15m to expand cold chain operations
Fresh Factory co-founders (from left): Widijastoro Nugroho, Larry Ridwan, and Andre Septiano / Photo credit: Fresh Factory
“Cold is the new hot,” says Larry Ridwan, founder and CEO of Indonesian cold chain fulfillment startup Fresh Factory, highlighting the growing demand for such services in the tropical archipelago.
Fresh Factory is in discussions with investors to raise between US$10 million and US$15 million by the end of this year or in the first quarter of 2025 to support its business expansion, Ridwan tells Tech in Asia.
The startup will use the funds to target middle and first-mile services and to launch less-than-container services, which allow customers to ship smaller cargo volumes without the need for a full container.
See also: A list of fundraising startups from Asia and beyond (Updated)
These efforts are part of the company’s plan to become a fully integrated cold chain provider. “We want to be like Lineage,” Ridwan says, referring to the US cold logistics giant that raised US$4.4 billion via its IPO in July.
Founded in 2020, Fresh Factory offers decentralized cold chain storage, pick-and-pack services, and last-mile delivery to both online and offline retailers. It primarily handles shipments of food, food-related products, and cosmetics, with fulfillment centers in 28 major Indonesian cities across Java, Bali, Sumatra, Kalimantan, and Sulawesi.
Photo credit: Fresh factory
The startup has raised about US$10 million in the past three rounds from investors such as East Ventures, Trihill Capital, SBI Ven Capital, and Saratoga Investama Sedaya, according to Ridwan.
The CEO expects Fresh Factory to achieve positive EBITDA for the first time within the next month or two. The company is also looking to apply AI and IoT technologies to enhance its handling, storage, and transportation of temperature-sensitive products along the supply chain.
Indonesia’s cold chain logistics market is estimated to reach around US$3.59 billion in 2024 and is expected to grow by more than 10% annually between 2024 and 2029.
Fresh Factory’s competitors in the country include Coldspace, Paxel, and Superkul. Regional player Ninja Van has entered the cold chain space as well and is setting its sights on expanding into Indonesia.
See also: Cold chain may be the next opportunity for Indonesia’s logistics startups
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The Indonesia-based firm expects to close the round by year-end or early 2025 as it seeks to be a fully integrated player.
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