Indonesia’s Astro raises $60M for 15-minute grocery delivery
- ByStartupStory | May 30, 2022
Tokopedia veteran Vincent Tjendra founded Astro. Indonesia’s vast archipelago has long been a headache for logistics companies, but there is no shortage of brave challengers. Jakarta-based Astro, which offers 15-minute grocery delivery, has recently completed a $ 60 million Series B funding round and has raised total funding since it began operations just nine months ago. It’s $ 90 million.
The Series B Round was led by Accel, Citius, and Tiger Global with the participation of existing investors AC Ventures, Global Founders Capital, Lightspeed, and Sequoia Capital India. The company refused to disclose the Post money rating.
The speed at which Astro attracts investment indicates the need for strong upfront investment in food delivery races. It’s about building your logistics infrastructure faster and getting more loyal customers than your competitors.
Founded by Tokopedia veteran Vincent Tjendra, Astro plans to spend its funding proceeds on user acquisition, product development, and hiring more staff to add to its current team of 200.
As in many countries around the world, on demand delivery got a boost during the COVID19 pandemic in Indonesia. But egrocery penetration in the country remains low and is estimated to be just 0.5% by 2022, compared to China`s 6% and South Korea`s 34% in 2020.
That means there`s a huge opportunity for companies like Astro that are trying to prove the convenience of online grocery ordering over brick-and-mortar visits. The egrocery delivery market in Indonesia is projected to reach $6 billion by 2025. The
Astro offers 15 minutes of delivery within 14 miles through a network of leased “dark stores” that are distribution centers dedicated to online shopping. The company owns the entire user journey from inventory procurement, supply chain, and midmile to last-mile delivery, so it adopts a cash-heavy model. The advantage of this heavyweight approach is that you can monitor the quality of the customer experience.
The Astro currently operates in approximately 50 locations in Greater Jakarta, with a population of 30 million, and has approximately 1,000 delivery drivers. According to the company, revenue has increased more than 10 times in recent months and downloads have exceeded 1 million.
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