Legit Group, a promising Indonesian cloud kitchen startup, recently revealed that it had secured a total of $13.7 million in a Series A funding round, spearheaded by MDI Ventures, a subsidiary of Telkom Indonesia, with participation from SMDV, East Ventures, and Winter Capital. In September 2021, Legit Group also secured a $3-million seed round, led by East Ventures. The company intends to channel the latest injection of funds into expanding its operations beyond the Greater Jakarta Area.
Since its inception in 2021, Legit Group has become a major player in the industry, operating four food and beverage brands—namely, Pastaria, Sei’Tan, Sek Fan, and Ryujin—in over 30 locations, primarily in Jakarta. The company relies on a full cloud kitchen business model, with no physical presence in offline establishments. According to the company, sales have tripled since its seed funding round in 2021.
Bram Hendrata, Legit Group’s Chairman and founder of Ismaya Group, one of the country’s most prominent lifestyle and hospitality companies that operates 18 F&B brands, expressed his excitement over the latest funding round. He added, “Through the new funding, Legit Group will strengthen its commitment to bringing more food to various places while continuing to innovate and improve the technology we have to achieve a more efficient operating system.” The company believes that by focusing on developing brands using technology to increase profits, it can gain a competitive advantage in the cloud kitchen market.
MDI Ventures CEO Donald Wihardja lauded Legit Group’s ability to develop innovative product and marketing strategies. He further commented, “MDI Ventures is increasingly confident that our support as a major investor will strengthen their position in the F&B industry and accelerate their business growth.”
According to Statista, the Indonesian online delivery market is estimated to reach $10.81 billion in 2023 and record a CAGR of 21.30% during 2023-2027, with a projected market volume of $23.4 billion by 2027. The country’s stable demand and opportunities for online food delivery have led to an influx of cloud kitchen startups. Dailybox, which secured $24 million in June 2021, led by Northstar and Vertex, and Hangry, which received $22 million in April 2022 from various investors, including Journey Capital Partners and Alpha JWC Ventures, are among the well-known cloud kitchen companies in Indonesia.
In conclusion, Legit Group’s impressive performance in the cloud kitchen space has earned it significant investments from prominent investors. With the additional funds, the company can leverage its cloud kitchen model and brand-building capabilities to continue expanding its reach and compete in the thriving online food delivery market in Indonesia.