Legit Group, a cloud kitchen brand operator based in Jakarta, is eyeing the rest of Indonesia after raising a $13.7 million Series A. The round was led by MDI Ventures, the venture capital arm of PT Telkom Indonesia TBK, the largest telecommunications conglomerate. in Indonesia. This included participation from Sinar Mas Digital Ventures (SMDV), returning investor East Ventures and Winter Capital.
This funding follows a $3 million seed round raised by Legit Group in 2021 from East Ventures and AC Ventures. Since then, Legit Group says its sales have tripled.
Established in 2021, Legit Group currently operates four of its own cloud brands: Pastaria, Seton, Sake Fan and Ryujin. It covers 30 points in Jabodetabek, the greater Jakarta metropolitan area. With the new funding it aims to expand into new areas with larger distribution markets, as 80% of its outlets are currently in Jakarta.
Prior to founding Legit Group, Chairman Bran Hendratha spent 15 years in the F&B industry. During that time, he built the F&B company Ismaya Group into one of the largest in Indonesia. Hendrata told TechCrunch that he became interested in cloud kitchens after seeing the shift towards online food delivery during the pandemic. He believed the change in habits would continue after the pandemic, as Indonesia’s growing middle class demanded convenience, such as having restaurant-quality food delivered to their homes.
Other cloud kitchen startups in Indonesia include Yummy and Hangry. Legit Group is currently working on an operating system that it says will give it an advantage over other cloud brand operators, but Hendrata said the company isn’t ready to comment on the technology right now because it’s one of the biggest projects it’s working on. on which they are working. with new funding.
The startup plans to further expand in Jabodetabek and also enter tier II cities like Surabaya and Malang this year. It also plans to launch new brands that will have different peak hours than its existing ones so that its kitchens can be used more efficiently.
In a statement about the investment, Donald Wihardja, CEO of MDI Ventures, said, “The experience of Legit Group’s founder, Bram who has been successful and profitable in the F&B business world for over 15 years, as well as innovative, effective products and Their ability to develop marketing strategies MDI Ventures is confident that our support as a lead investor will strengthen their position in the F&B industry and accelerate their business growth.