Indonesian quick commerce firm to shut shop, plans to pivot

Indonesian quick commerce firm Bananas is set to close its operations after launching in January. As a result, it has also laid off 36 employees.

Bananas told Tech in Asia that it couldn’t find unit economics that worked for the company despite “constantly experimenting with different parts of the business for months.”

Bananas founders Kristian Sinaulan (left) and Mario Gaw / Photo credit: Bananas

The East Ventures-backed startup said it will stop all of its services after selling its remaining inventory at a discount. At the same time, Bananas is helping its laid off employees find new places to work.

“We are working hard to place them elsewhere. Most are already having interviews,” Mario Gaw, co-founder and CEO of Bananas, told Tech in Asia.

Bananas was founded in late 2021 by Gaw and Kristian Sinaulan. In February, it raised US$1.5 million in a seed round led by East Ventures and joined by SMDV, Arise, MDI Ventures, and Y Combinator separately.

After closing its current operations, Gaw said the company is pivoting to a new business outside the e-grocery space, though he did not disclose further details. Aldi Adrian Hartanto, MDI Ventures vice president, emphasized that the firm still has “a long runway and sizable cash in the bank to continue the journey with a new direction.”

Meanwhile, East Ventures told Tech in Asia it will support the decisions of its portfolio companies’ founders in consultation with the VC firm. “Business calibration and corporate exercises are normal,” said Willson Cuaca, its co-founder and managing partner.

See also: The key players in Southeast Asia’s online grocery market

This marks the latest setback for the quick commerce space in Indonesia, which has received at least US$31 million in investments this year. Dropezy, for instance, has pulled back from the sector recently, while e-grocery firm HappyFresh has also shut down its quick commerce service.