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It’s been more than a year since this pandemic began, but most of us still have to rely heavily on online platforms for daily essentials.
In Southeast Asia, the surge in demand for online groceries has turned this space into a battleground. A 2020 study by Facebook and Bain & Company estimates that the region’s grocery market is worth US$350 billion, with penetration at only 0.3%.
Founded in 2014, HappyFresh – a pioneer in the region’s online grocery space – appears poised to seize the moment. The company recently raised US$65 million in a series D round led by Naver Financial Corporation and Gafina, which is quite surprising considering that giants like Grab, Gojek, and Lazada have all heavily invested in this arena.
But while HappyFresh’s investors are bullish about its prospects, the road ahead is not necessarily a smooth one. Third-party estimates show that HappyFresh’s numbers lag behind other players, while industry sources say that its business model generates thinner margins compared to others.
We take a closer look at these developments in Indonesia’s e-grocery scene and more in this week’s ecommerce premium story.
— Jofie
THE BIG STORY
Inside Indonesia’s spicy e-groceries space
Image credit: Timmy Loen
E-grocery HappyFresh benefits from its first-mover advantage, but competitors with different strategies are on the rise.
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1️⃣ The rush among food delivery apps to deliver more than just food
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