Indonesian cloud kitchen startup, Legit Group, has raised $13.7 million in a Series A funding round, with MDI Ventures leading the funding and Sinar Mas Digital Ventures (SMDV), East Ventures, and Winter Capital also participating.
In September 2021, Legit Group raised a seed round of $3 million, with East Ventures taking the lead.
With the new investment, Legit Group plans to expand its operations beyond the Greater Jakarta Area. Legit Group, which was founded in 2021, currently operates four food and beverage brands, namely Pastaria, Sei’Tan, Sek Fan, and Ryujin, in over 30 locations primarily in Jakarta.
Legit Group employs a purely cloud kitchen business model, without any physical offline presence. According to the company, since its seed funding round in 2021, it has experienced robust traction, with sales increasing by roughly three times.
“We are thrilled to have a strong group of investors supporting us in creating F&B infrastructure that carries the vision of ‘Food for Everyone’,” Bram Hendrata, Chairman of Legit Group, said in a statement.
Hendrata is not only the founder and CEO of Legit Group but also of Ismaya Group, a leading lifestyle and hospitality company in Indonesia that manages 18 food and beverage brands.
“Through the new funding, Legit Group will strengthen its commitment to bringing more food to various places while continuing to innovate and improve the technology we have to achieve a more efficient operating system,” Hendrata added.
Legit Group has recognized the potential of next-generation food and beverage technology, which emphasizes brand development through the use of technology to maximize profits. This approach is expected to provide a competitive edge in the cloud kitchen market.
MDI Ventures CEO Donald Wihardja said, “Their [Legit’s] ability to develop innovative product and marketing strategies makes MDI Ventures increasingly confident that our support as a major investor will strengthen their position in the F&B industry and accelerate their business growth.”
Statista predicts that by 2023, the Indonesian online delivery market will reach $10.81 billion, with a projected compound annual growth rate of 21.30% between 2023 and 2027. The market volume is set to expand to $23.4 billion by 2027.
The stable demand and promising prospects for online food delivery have spurred the emergence of several cloud kitchen startups in Indonesia. With its lean asset model, cloud kitchen offers advantages such as reduced operating expenses and maintenance costs compared to traditional dine-in restaurants.
Apart from Legit Group, other prominent cloud kitchen companies in Indonesia include Dailybox, which secured $24 million in funding last June, led by Northstar and Vertex, and Hangry, which raised $22 million in April 2022 from various investors, including Journey Capital Partners and Alpha JWC Ventures.