Jakarta-based cloud kitchen brand operator, Legit Group, has set its sights on expanding into new regions across Indonesia, following a successful $13.7 million Series A funding round led by MDI Ventures, the venture capital arm of the country’s largest telecom conglomerate, PT Telcom Indonesia Tbk. The funding will be used to expand Legit Group’s delivery footprint, with the majority of its outlets currently located in the Jabodetabek region of Jakarta, where it operates four cloud brands, including Pastaria, Sei’Tan, Sek Fan, and Ryujin.
According to the chairman of Legit Group, Bran Hendrata, the company plans to enter other delivery markets, particularly second-tier cities like Surabaya and Malang, while also launching new brands with peak hours that will complement its existing ones, allowing it to more efficiently use its kitchens. Hendrata, who spent 15 years in the F&B industry building Ismaya Group into one of Indonesia’s largest F&B companies, believes the trend towards online food delivery will continue, driven by the convenience demanded by the country’s growing middle class.
Legit Group’s focus on innovation has given it a competitive edge, according to its founder, who revealed the company is working on an operating system to give it an advantage over other cloud brand operators. However, he declined to comment further, saying the project is one of the company’s biggest and they are not ready to discuss it yet.
Donald Wihardja, CEO of MDI Ventures, said in a statement, “Legit Group founder’s experience, Bram who has been successful and profitable in the F&B business world for 15 years, as well as their ability to develop innovative, effective product and marketing strategies, makes MDI Ventures increasingly confident that our support as a major investor will strengthen their position in the F&B industry and accelerate their business growth.”
Legit Group’s Series A funding round comes on the back of a successful $3 million seed round in 2021, which saw sales grow three times, following which the company plans to expand into new delivery markets.