East Ventures Leads Seed Funding for F&B Company “Legit Group”

The local F&B firm Legit Group announced $3 million seed funding (worth Rp43 billion) led by East Ventures with participation from AC Ventures. Legit Group will use the funds to launch two new brands focused on delivery services with marketing; and expand operations to 135 distribution points by the end of this year.

Legit Group is a multi-brand cloud kitchen conceptor and operator founded by Sumarno Ngadiman, Monica Evanti, and Asrul Abraham Hendrata in early February 2021. Sumarno was previously the founder of Eatwell Group, the owner of a restaurant group network that operates the Ta Wan, Ichiban Sushi, Warung Solo, and Eat and Eat.

Currently, Legit Group operates three brands, Pastaria, Sei’Tan and Juju Chikin which has 45 distribution points. They designed the business by utilizing delivery solutions generating big opportunity during this pandemic.

According to data compiled by Statista, Indonesia is the largest food delivery service market in Southeast Asia with a value of $3.7 billion and accounts for 31% of total deliveries in the region. This value is recorded to grow continuously by 32.5% every year.

In the midst of a pandemic situation, the majority of the global community experienced changes in their consumption behavior of F&B products. Consumer behavior that tends to reduce their intensity to eat and drink out (dine-in) has created great opportunities for F&B businesses that focus on delivery services.

Legit Group’s Co-Founder & CEO, Sumarno Ngadiman said, “The DNA of an F&B business that prioritizes delivery is very different from that of an offline or traditional restaurant business, which is why many traditional restaurants find it difficult to compete in the delivery service market.

“The key to the success of a F&B business that focuses on delivery services is being able to create high quality food that has consistent timeliness and remains optimal during delivery and at an affordable price, therefore, customers can make it a part of their daily habits.”

He believes that the trend of adopting food delivery services will continue until the pandemic is over. Legit Group’s sales have grown 9.5 times since its estabishment, and saw a 61% increase in revenue from June to July.

Legit Group has built strategic partnerships with Ismaya Group, Yummy Corp, and GK Hebat to accelerate expansion and drive business growth strategies. This position allows companies to use its existing infrastructure to rapidly expand operations without large upfront investments.

“This has allowed us to rapidly expand our coverage thereby lowering shipping costs for customers who order our products. We have been in the F&B business for more than 20 years and will use our experience to create the products that customers want while adhering to food handling standards. the best safety,” Sumarno added.

East Ventures’ Managing Partner, Roderick Purwana said, since the beginning of the pandemic the F&B sector has been significantly impacted due to restrictions on mobility and eating-in activities. They can no longer rely on traditional dine-in sales, they have to include online food delivery services, which is a necessary step to stay afloat.

“Despite being recently launched earlier this year, Legit Group has proven its ability to create unique and attractive F&B brands with impressive growth. Thanks to a very solid team with industry-leading experience for this achievement is,” he said.

East Ventures’ operating partner, David Fernando Audy added that Ismaya’s role in the F&B industry is unquestionable. Now the concept is being replicated through Legit Group by leveraging their kitchen and network infrastructure with various online initiatives and technology to deliver quality food with great taste and affordable prices.

“At the level of speed and economies of scale it will make Legit Group a great player in the on-demand food delivery business.”

Indonesia’s cloud kitchen industry

According to the e-Conomy SEA 2020 report, the transportation and food delivery industry will be worth $16 billion (GMV) by 2025, from $5 billion in 2020. The main engine of the digital economy in this country is still dominated by trade via e-commerce platforms which is projected to worth $83 billion.

The food delivery service ecosystem is also driven by the development of the cloud kitchen industry. In Indonesia, citing the Rise of Virtual Kitchen 2021 report published by Savills Research & Consultancy, the cloud kitchen model currently operating is targeting different consumers from restaurants in malls.

It is estimated that there are 70 cloud kitchen outlets operated by seven players in Jakarta. Ismaya Group, through one of its affiliates, Yummy Kitchen.

No Operator  Year of est. Location Minimum contract Kitchen size Price from Partner brands
1 GrabKitchen 2018 45 outlet 1 tahun 10-20 m2 Bagi hasil Geprek Bensu, Reddog, The Good Habit Express
2 Dapur Bersama GoFood 2019 27 outlet 1 tahun 14-25 m2 Bagi hasil FamilyMart, Banzai, I am Geprek Bensu
3 Everplate 2019 9 outlet 1 tahun 6-17 m2 Biaya tetap, 6 juta/bln 2080 Burger, The Moo, Bakso Gembul
4 Yummy Kitchen 2019 40 outlet 6 bulan 5-10 m2 Bagi hasil, 7 juta/bln Dailybox, KyoChon, Se’i Sapi Lamalera
5 Kita Kitchen 2020 3 outlet 6 bulan 6-17 m2 Biaya tetap, 5 juta/bln Burgreens, Thai Alley, Yoshinoya, SaladStop
6 Telepot 2020 1 outlet 6 bulan 7-19 m2 Bagi hasil, 6 juta/bln Yuks Bowl, Kaka Bakes, CWIMS
7 Hangry 2020 40 outlet N/A N/A N/A Own brand
8 Popitsnack N/A 1 outlet N/A N/A N/A Segara Market, Tehna
9 Tabula 2020 53 outlet N/A N/A N/A Mujigae, Palava, Fondre
10 Eden Kitchen 2020 1 outlet N/A N/A Biaya tetap, 5 juta/bln Oppa Corn Dog, Unicorn Burger
11 Foodstory 2021 2 outlet N/A N/A N/A Ayam Sunda Empire, Nasi Goreng TikTok, Chick Pok!
12 Lookalkitchen 2021 50 outlet N/A N/A N/A Dapoer Bang Jali by Denny Cagur
13 DishServe 2021 100 outlet N/A N/A Komisi Phago, Daipan
14 Eatsii 2021 N/A N/A N/A N/A Nasi Goreng Endoy, Simply Fry
15 Boga Kitchen 2020 16 outlet N/A N/A N/A Own brand


Original article is in Indonesian, translated by Kristin Siagian

East Ventures Pimpin Pendanaan Tahap Awal Perusahaan F&B “Legit Group”

Perusahaan F&B lokal Legit Group mengumumkan pendanaan tahap awal sebesar $3 juta (senilai Rp43 miliar) yang dipimpin oleh East Ventures dengan partisipasi dari AC Ventures. Legit Group akan menggunakan dana tersebut untuk meluncurkan dua brand baru yang berfokus pada layanan pengiriman dengan pemasaran; serta memperluas operasional ke 135 titik distribusi hingga akhir tahun ini.

Legit Group adalah konseptor dan operator cloud kitchen multi-brand yang didirikan oleh Sumarno Ngadiman, Monica Evanti, dan Asrul Abraham Hendrata pada awal Februari 2021. Sumarno sebelumnya adalah founder Eatwell Group, pemilik jaringan grup restoran yang mengoperasikan brand Ta Wan, Ichiban Sushi, Warung Solo, dan Eat and Eat.

Saat ini, Legit Group mengoperasikan tiga brand, yakni Pastaria, Sei’Tan dan Juju Chikin yang telah tersebar di 45 titik distribusi. Mereka mendesain bisnisnya dengan memanfaatkan solusi pesan-antar yang tengah mendapatkan kesempatan besar sepanjang pandemi ini.

Menurut data yang dihimpun Statista, Indonesia adalah pasar layanan pesan-antar makanan terbesar di Asia Tenggara dengan nilai $3,7 miliar dan menyumbang 31% dari total pengiriman di kawasan ini. Nilai ini tercatat terus bertumbuh sebesar 32,5% setiap tahun.

Di tengah situasi pandemi, mayoritas masyarakat global mengalami perubahan perilaku konsumsi produk F&B. Perilaku konsumen yang cenderung mengurangi intensitas mereka untuk makan dan minum di luar (dine-in) telah menciptakan peluang besar bagi bisnis F&B yang berfokus pada layanan pesan-antar.

Co-Founder & CEO Legit Group Sumarno Ngadiman mengatakan, DNA dari bisnis F&B yang mengutamakan pengiriman sangat berbeda dari bisnis restoran offline atau tradisional, itulah sebabnya banyak restoran tradisional kesulitan untuk bersaing di pasar layanan pesan-antar.

“Kunci sukses dari bisnis F&B yang berfokus pada layanan pesan-antar adalah mampu menciptakan makanan berkualitas tinggi yang memiliki ketepatan waktu konsisten serta tetap optimal selama pengiriman dan memiliki harga terjangkau sehingga pelanggan dapat menjadikannya sebagai bagian dari kebiasaan sehari-hari mereka.”

Pihaknya percaya tren adopsi layanan pesan-antar makanan akan tetap ada hingga pandemi usai. Penjualan Legit Group telah tumbuh 9,5 kali sejak awal berdiri, dan mengalami peningkatan pendapatan hingga 61% dari Juni hingga Juli saja.

Legit Group telah membangun kerja sama strategis dengan Ismaya Group, Yummy Corp, dan GK Hebat untuk mempercepat ekspansi dan mendorong strategi pertumbuhan bisnis. Posisi tersebut membuat perusahaan dapat menggunakan infrastruktur yang dimiliki untuk memperluas operasional dengan cepat tanpa investasi besar di awal.

“Hal ini memungkinkan kami untuk memperluas cakupan kami dengan cepat sehingga menurunkan biaya pengiriman untuk pelanggan yang memesan produk kami. Kami telah berkecimpung dalam bisnis F&B selama lebih dari 20 tahun dan akan menggunakan pengalaman kami untuk menciptakan produk yang diinginkan pelanggan dengan tetap menerapkan standar penanganan food safety terbaik,” imbuh Sumarno.

Managing Partner East Ventures Roderick Purwana mengatakan, sejak awal pandemi sektor F&B sangat terpukul karena pembatasan mobilitas dan kegiatan makan di tempat. Mereka tidak bisa lagi mengandalkan penjualan makan di tempat tradisional seperti sebelumnya, sekarang harus menyertakan layanan pengiriman makanan online, yang merupakan langkah yang diperlukan untuk tetap bertahan.

“Meski baru diluncurkan awal tahun ini, Legit Group telah membuktikan kemampuannya dalam menciptakan brand F&B yang unik dan menarik dengan pertumbuhan yang mengesankan. Pencapaian tersebut berkat tim yang sangat solid dengan pengalaman industri terkemuka,” kata dia.

Operating Partner East Ventures David Fernando Audy menambahkan, kiprah Ismaya di industri F&B sudah tidak diragukan lagi. Sekarang konsep tersebut direplikasi melalui Legit Group dengan memanfaatkan dapur dan infrastruktur jaringan mereka dengan berbagai inisiatif online dan teknologi untuk menghadirkan makanan berkualitas dengan rasa yang enak dan harga terjangkau.

“Pada tingkat kecepatan dan skala ekonomis akan menjadikan Legit Group sebagai pemain yang hebat di industri pesan-antar makanan online (on-demand food delivery business).”

Industri cloud kitchen di Indonesia

Menurut laporan e-Conomy SEA 2020, industri transportasi dan pengiriman makanan bakal bernilai $16 miliar (secara GMV) pada 2025 mendatang, dari $5 miliar di 2020. Mesin utama ekonomi digital di negara ini masih didominasi oleh perdagangan lewat platform e-commerce yang diproyeksikan akan bernilai $83 miliar.

Dalam ekosistem layanan pesan-antar makanan, turut didorong oleh perkembangan industri cloud kitchen. Di Indonesia, mengutip dari laporan Rise of Virtual Kitchen 2021 yang diterbitkan Savills Research & Consultancy, model cloud kitchen yang beroperasi saat ini menyasar target konsumen yang berbeda dari restoran di mal.

Diestimasi ada 70 outlet cloud kitchen yang dioperasikan tujuh pemain di Jakarta. Ismaya Group, melalui salah satunya afiliasinya, Yummy Kitchen.

No Nama Operator Tahun berdiri Lokasi Minimum kontrak Ukuran dapur Harga sewa (mulai dari) Mitra brand
1 GrabKitchen 2018 45 outlet 1 tahun 10-20 m2 Bagi hasil Geprek Bensu, Reddog, The Good Habit Express
2 Dapur Bersama GoFood 2019 27 outlet 1 tahun 14-25 m2 Bagi hasil FamilyMart, Banzai, I am Geprek Bensu
3 Everplate 2019 9 outlet 1 tahun 6-17 m2 Biaya tetap, 6 juta/bln 2080 Burger, The Moo, Bakso Gembul
4 Yummy Kitchen 2019 40 outlet 6 bulan 5-10 m2 Bagi hasil, 7 juta/bln Dailybox, KyoChon, Se’i Sapi Lamalera
5 Kita Kitchen 2020 3 outlet 6 bulan 6-17 m2 Biaya tetap, 5 juta/bln Burgreens, Thai Alley, Yoshinoya, SaladStop
6 Telepot 2020 1 outlet 6 bulan 7-19 m2 Bagi hasil, 6 juta/bln Yuks Bowl, Kaka Bakes, CWIMS
7 Hangry 2020 40 outlet N/A N/A N/A Own brand
8 Popitsnack N/A 1 outlet N/A N/A N/A Segara Market, Tehna
9 Tabula 2020 53 outlet N/A N/A N/A Mujigae, Palava, Fondre
10 Eden Kitchen 2020 1 outlet N/A N/A Biaya tetap, 5 juta/bln Oppa Corn Dog, Unicorn Burger
11 Foodstory 2021 2 outlet N/A N/A N/A Ayam Sunda Empire, Nasi Goreng TikTok, Chick Pok!
12 Lookalkitchen 2021 50 outlet N/A N/A N/A Dapoer Bang Jali by Denny Cagur
13 DishServe 2021 100 outlet N/A N/A Komisi Phago, Daipan
14 Eatsii 2021 N/A N/A N/A N/A Nasi Goreng Endoy, Simply Fry
15 Boga Kitchen 2020 16 outlet N/A N/A N/A Own brand