Tumbasin, a promising e-grocery startup based in Indonesia, has closed its doors due to “insurmountable financial challenges,” according to CEO and co-founder Bayu Mahendra Saubig. In a recent LinkedIn post, he acknowledged the unfortunate end to the company’s journey.
Founded in 2017, Tumbasin operated in major cities throughout the country, including Jakarta, Malang, and Makassar. It offered users the convenience of comparing prices of groceries across traditional markets and making purchases directly through its platform. The startup raised an undisclosed amount in a seed round from Indigo, Telkom Indonesia’s startup incubator, in 2021. Co-founders Muhammad Fu’ad Hasbi and Tri Asworo Mituhu Subekti also played pivotal roles in the establishment of the company.
In 2020, Tumbasin boasted around 14,000 active users and had partnered with 22 traditional markets and 700 sellers. The startup was also listed as one of the top Indonesian companies to watch in 2023 by directory site Startup Stash, alongside coffee chain Kopi Kenangan and investment firm Pluang.
Sadly, Tumbasin is not the only e-grocery business that has had to close its doors recently in Indonesia. Local agritech firms TaniHub and Sayurbox have also shut down warehouses and B2C e-grocery services, leading to workforce reductions. Furthermore, Traveloka Mart, the e-grocery service of the travel giant, had to close after only six months of operations.
The e-grocery industry is facing tough competition, and many players are struggling to keep their heads above water. These developments highlight the challenges that e-grocery startups face in the highly competitive market in Indonesia.