SINGAPORE - Kedai Sayur, an Indonesian start-up that empowers vegetable hawkers by using technology, has closed a US$4 million (S$5.6 million) round of funding led by venture capital firm East Ventures.
Other participating investors include SMDV, Triputra Group and Multi Persada.
The fresh funds will help accelerate the onboarding of vegetable hawkers and retailers as its partners (also known as Mitra Sayur), further extend its network of suppliers and develop its technology, the company said in a press statement on Friday (Aug 23).
Kedai Sayur, which translates to "vegetable kiosk", was established with the mission to bring the benefits of the digital economy to Indonesia's vegetable hawkers.
According to the company, most hawkers in Indonesia struggle to source for competitive fresh produce due to the long supply chain that raises costs by two to three times and affects the freshness of food.
Essentially, the start-up cuts out middleman vendors and works with farmers and hawker partners directly for sourcing and distribution of vegetables. The process helps increase the profit margins and quality of products for hawkers, who are typically in the "last mile" of the supply chain.
Hawker partners can access Kedai Sayur's products through its app and pick them up from the nearest drop-off points. Grocers who join the start-up's platform can register as these drop-off points.
The start-up also provides partners with delivery vehicles to help them reach door-to-door customers more efficiently, and offers a financing programme for partners who have limited capital to purchase the vehicles.
The nine-month-old start-up says that it provides more than 300 products in its distribution centre to date, and these are accessible to its partners who join the company through its mobile app.
Co-founder and chief executive of Kedai Sayur Adrian Hernanto said: "From day one, we aim to create a tangible impact for all the fresh produce hawkers, and allow them to enjoy a higher quality of life.
"We are delighted to witness the constantly increasing purchase value experienced by all of our Mitra Sayur, and how most of them can even double the amount within the first six months. This is only the beginning of our journey to support all hawkers going forward, and we are grateful to have the trust of our investors and partners."
This latest funding round comes shortly after Indonesia-focused East Ventures led a US$1.3 million seed funding round into Kedai Sayur in May this year.