Indonesian cloud kitchen firm cooks up expansion plans with $13.7m raise

The cloud kitchen space is a competitive landscape to be in. Some players like Hangry have been thriving, with the Indonesian firm seeing revenues take a 2.5x leap in revenue last year. Meanwhile, the entrants of India’s Swiggy and Singapore’s Grab didn’t see the same success.

Legit Group, a multi-brand cloud kitchen startup in Indonesia, said it’s in the camp of seeing continued growth. The company shared that while other cloud kitchen businesses focused on consumer acquisition, it has been doubling down on F&B tech.

Now, Legit Group believes it’s the right time to expand its reach, and it has raised new capital to help it do so.

Funding details

• Funding amount: $13,700,000
• Lead investor: MDI Ventures
• Other investors: East Ventures, SMDV, Winter Capital
• Stage: Series A
• Source

The firm operates F&B brands such as Pastaria, Sei’Tan, and Ryujin.

Moving forward, Legit Group said it will widen its footprint in Jabodetabek and other cities with large delivery markets. Right now, about 80% of its business is still concentrated around the Jakarta area.

“A big chunk of the funding is for outlet and brand expansion. And some allocation to build technology to enable operations optimization,” Bram Hendrata, chair and co-founder of Legit Group, told Tech in Asia.

The company most recently raised funds in 2021 when it secured US$3 million in a seed round led by East Ventures. At the time, it only had three of its current five brands.

Hendrata added that Legit Group had opened nine outlets in 2021 and grew its number of bowls sold per month by 2.5x last year.

“Balancing growth with healthy unit economics is surely a challenge. Legit Group is still at a stage where our focus should be on growth and expansion, but it’s equally important to ensure the company’s sustainability and profitability in the near future,” the exec said.

More details