Go-Ventures leads US$16M Series A in grocery social commerce startup Segari

(L-R) Segari co-founders Farandy Ramadhana, Farand Anugerah, and Yosua Setiawan

Indonesian grocery social commerce startup Segari has received US$16 million in a Series A funding round led by Go-Ventures, with participation from SIG.

A cohort of strategic investors, including Alfamart (a large retailer in Indonesia), Gunung Sewu Group (a large conglomerate focusing on agriculture and food) and Intrinity Capital (affiliated with Gulaku), also participated.

Segari’s seed-stage investors — Beenext, AC Ventures and Saison Capital — also returned to co-invest in the new round. The seed round, closed in March this year, was led by Beenext with participation from AC Ventures, Saison Capital and angels.

The firm will use the capital to strengthen its supply chain. To do so, Segari plans to expand its team, hiring aggressively in areas such as operations, supply chain, technology and marketing.

“The agriculture supply chain is one of the most complex problems in Indonesia, with multiple layers between farmers and consumers. We can make a huge impact by enabling consumers to quickly receive better quality and lower cost groceries while simultaneously helping farmers receive fair prices for their produce. With this latest injection of funding, we aim to continue our strong growth and make a real impact for consumers and farmers,” said Segari CEO Yosua Setiawan.

Also Read: Capturing the next frontier opportunities in the Indonesian e-commerce landscape

Launched in 2020 by Setiawan, Farand Anugerah (COO), and Farandy Ramadhana (CTO), Segari focuses on providing fresh farm produce to consumers. It streamlines the country’s complex agricultural supply chain through sophisticated operations and empowering local community leaders to offer grocery services to their social networks.

Customers place orders via Segari’s website or mobile app, and deliveries will be made within 15 hours from farm to table. A full range of groceries is available across fruit, vegetables, meat, and staples categories.

The startup sources the vast majority of its fresh produce directly from farmers in Java and Sumatra. According to it, this ensures high quality, fresh produce while supporting local farming communities.

It has decentralised warehouses and a community leader network with deep relationships to facilitate faster delivery times and provide better quality produce at lower costs.

In less than 12 months of operation, Segari claims to have grown its users, orders and revenues more than 20 times.

Setiawan expects Segari to grow more than 10-fold over the next 18 months.

“The current COVID-19 pandemic has been a tremendous catalyst for growth for the Indonesian e-grocery market. More consumers are shifting to online purchasing, in particular for their everyday essential grocery shopping. Yosua, Farand and Farandy (co-founders of Segari) are well-positioned to continue solving one of Indonesia’s most pressing problems – the complex, multi-layered agriculture supply chain,” said Aditya Kamath, Partner, Go-Ventures.

Slides: Indonesia’s agritech ecosystem report 2019

“Segari has demonstrated powerful execution in their goal of replacing traditional supermarkets and creating value and convenience for consumers in Indonesia. Furthermore, Segari’s social commerce model helps establish a strong moat. The platform can reach consumers and households with lower acquisition and logistics costs, creating a more favourable set of unit economics,” said Adrian Li, managing partner of AC Ventures.

Setiawan previously worked with the Boston Consulting Group and Traveloka. Anugerah, an alumnus of Harvard Business School, has previously worked at Grab. Ramadhana has worked as a software engineer at Amazon, Google and Moka before starting Segari.

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Image Credit: Segari

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