East Ventures leads $3m round of Ismaya-backed cloud kitchen startup

Legit Group, a Jakarta-based cloud kitchen company, has raised US$3 million in a seed round led by East Ventures. AC Ventures also participated in the fundraise.

Legit Group co-founders (from left): Monica Evanti, Sumarno Ngadiman, and Asrul Abraham Hendrata / Photo credit: Legit Group

Legit Group was incorporated in February this year through a strategic partnership between Ismaya Group, Yummy Corp, and GK Hebat. The cloud kitchen firm creates food and beverage brands in Southeast Asia that focus on delivery.

Legit Group said its sales have grown almost 10x since its inception, helping it log a 61% increase in revenue from June to July. It will use the fresh capital to expand its locations and set up and market new delivery-centric brands, the firm said in a statement.

The startup currently has three brands – Pastaria, Sei’Tan, and Juju Chikin – and operates 45 distribution points. It plans to launch two more brands and have 135 distribution points by the end of the year.

Currently, Indonesia’s US$3.7 billion food delivery service market is the largest in Southeast Asia. The figure accounts for 31% of the total food delivery value in the region and continues to grow at an annual rate of 35.2%.

See also: The rush among food delivery apps to deliver more than just food

“As F&B players can no longer rely more on traditional dine-in sales like before, they are now embracing online food delivery service, which is a necessary move to stay afloat through the pandemic,” said Roderick Purwana, managing partner of East Ventures.

Ismaya is well-known in F&B circles will help Legit deliver quality food at affordable prices by leveraging the 18-year-old firm’s kitchen and network infrastructure as well as its online and tech resources, said David Fernando Audy, operating partner of East Ventures.