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Bringing home the (mock) bacon: How Burgreens aims to transform Jakarta’s vegan food market

When Burgreen co-founder Helga Angelina Tjahjadi moved to Amsterdam 10 years ago, she met both her future spouse and her co-founder Max Mandias.

Based in Jakarta, Burgreens is an organic healthy plant-based eatery specifically designed for the Asian food palette. Its customer base is mostly non-vegetarian: the more health-conscious omnivores and people who consciously choose to eat less meat due to health and environmental reasons.

Tjahjadi was passionate about vegan diet ever since she was 15 as it had helped her recover from severe chronic ailments while Max had switched to one due to environmental reasons.

The duo started testing out their plant-based recipes in Amsterdam. Later, Tjahjadi was convinced by her husband to move back to Indonesia and start the business from there.

During their initial days, the couple did everything from ideating the menu, making the burger patties, and serving food from Max’s home basement which they converted into a kitchen.

“We started the business, honestly, without a business plan in the first three years. It was really like taking a leap of faith to follow our passion,” Tjahjadi shares with e27.

Surely enough, it was only in the third year where the business took off. However, the road to success was not always smooth sailing.

Also Read: Bühler invests in Big Idea Ventures’s New Protein Fund; to invest in up to 100 plant- and cell-based firms

“We made some mistakes during our initial years. This was because growing too fast before placing new foundations cost us some painful consequences,” she explains the challenges they faced.

“When we started, we had to deal with problems such as fraud. And we learned a lot from the process which was to improve our finance, team and control systems and have a solid foundation.”

She recalls an incident where an employee took orders but did not input it into the system.

“Even though it was a small amount of money, he did it every day, mounting up to a year. So in the end, when we summed it up, it was quite a lot of money.”

However, despite the hurdles, the couple grew their business from a two-man team to a 150 people team with 10 outlets in Jakarta, Tangerang, and Bandung.

The company also recently managed to raise Pre Series A funding from Singapore-based VC firm Teja Ventures and investors from the Angel Investment Network (ANGIN).

She attributes her success to a combination of luck, hard work, and passion, advising fellow entrepreneurs to not be afraid of making mistakes and learning.

The Vegan Landscape

What Burgreens wants to do is to make healthy food mainstream by becoming more affordable.

“In Asian countries, there’s a lot of meat available, which makes them very affordable. But what we’re seeing is that if we want to focus on healthy plant-based eating; it’s not just about the taste but also the nutrition profile. So our focus is not just to mimic the taste and the texture but to also the nutrition profile, and offer people the same amount of protein that they would find in a regular chicken,” she elaborates.

Tjahjadi further outlines that initially, their business had a niche customer base. But the COVID-19 pandemic has helped them to gain more following as many reports identify meat markets as the source of the virus.

She says that there is a growing awareness from millennial groups on healthy food discussions, climate change and reduction of carbon footprint. With all of these factors taken into consideration, the trend is here to stay.

Also Read: She Loves Tech returns for the 6th time as a fully online event

While many Western brands have also recognised the opportunity of plant-based food in the Asian market, companies such as Beyond Meat and Impossible Meat have accelerated their entrance since the start of the pandemic.

What separates Burgreens from these brands is that it focuses specifically to create a plant-based diet that suits the Asian taste palette.

Big Max burger at Burgreens

In Southeast Asia, the plant-based market is estimated to be worth US$14.5 billion by 2025, according to an exclusive report published by MarketsandMarkets.

“Retailers were focused on ensuring the supply of staple foods were available and were less concerned about stocking new plant-based foods. However, consumers have been increasingly demanding more plant-based foods as concerns about food safety and the virus have contributed toward a shift to more plant-based food options,” Andrew Ive, Founder of Big Idea Ventures tells foodingredientsfirst.

The movement has been catching a new force in markets that are only just beginning to hold on to a theme that is already popular in North American and European markets.

Image Credit: Burgreens

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Meet the VC: In conversation with East Ventures’ first female partner, Melisa Irene

Melisa-Irene_Partner

East Ventures, is an early-stage venture fund focused on investments in Tokopedia, Traveloka, Ralali, Shopback, etc. Started in 2009 at the onset of digitalisation, the founding partners believed in the digital ecosystem and this guided their philosophy to invest in early-stages of a company. They rely on the idea “natural entrepreneurship” and feel a startup is a tipping point in this journey.

With over 170 investments in companies across Southeast Asia and Japan; they recently launched a new fund (their 8th) of US$88 million that is sector agnostic. In our recent webinar, we spoke to Melisa Irene, the first female partner at East Ventures to know more about them.

Irene joined the company in 2015 as an Associate and successfully closed multiple deals for the company. In such a short time of three years, Irene was the firm’s principal before finally promoted as the first female partner.

Also read: East Ventures forms new US$88M seed fund for startups weathering COVID-19, announces first close

Key takeaways

  • East Ventures have invested in a lot of pre-seed-stage companies that have no revenue or traction. “Our philosophy is people first; then potential market. If the person is right and they have chosen the right industry market, he/she will be able to create the product to solve market problems,” said Irene.
  • The key traits they look for in founders are integrity, self- awareness, and paradoxical traits (visionaries but have light ear; global knowledge with local wisdom)
  • COVID has not necessarily affected growth trajectories. Because growth also depends on the sectors they are operating. Some are positively impacted; gaining traction faster; some negatively impacted by the government operating restriction. Growth at all cost model has already been challenged even before COVID.
  • Exits for startups will still happen but the timeline to execute it might take longer.

Also read: Meet the VC: Click Ventures’ Carman Chan on the most exciting changes in Hong Kong startup scene today

  • While investors are becoming more careful, the growth-stage investment might return back in 2021 as the market is still predicting a recovery post-vaccine.
  • They usually go by referrals from the founder network for deal sourcing.
  • Synergies among portfolio companies are of course preferred but it cannot be forced. There is ripe timing for effective partnerships. Examples are, many portfolio share offices at Cohive; or headhunting being helped by Ekrut; or collaboration between Warung Pintar and GrabKios; or how our SaaS solution is being used by most portfolio companies to support their back end operations: Xendit (payment), Mekari (Jurnal – accounting and Talenta-HR), Jojonomic (expense management).

Resources

Watch the full webinar via the recording below:

Register for our next webinar: Meet the VC: Gobi Partners

Register now: What is corporate venture building and why this is the right time to look at capturing venture opportunities across South-east Asia.

e27 Pro membership will further empower you with insights, tools, and opportunities that help you solve the problems that hold you back. Begin your company’s journey to success here.

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Ecosystem Roundup: Line Man-Wongnai merger bags US$110M; HashStacs to develop blockchain platform for tracking investor holdings

The startup paradox: Altruism juxtaposed with toxicity; You want to help every startup founder in the same boat and they want to help you back; It would be great if we could somehow bottle this altruism and provide the same level of support to our own teams. e27

Delivery app Line Man merges with Thai restaurant review platform Wongnai; The new entity has received US$110M from BRV Capital Management; The move is expected to help Line Man as it tussles with other regional players like Grab, gojek and foodpanda in the food delivery war. Bangkok Post

Meet the VC: In conversation with East Ventures’ first female partner, Melisa Irene; With over 170 investments in companies across SEA and Japan, it recently launched its new sector-agnostic fund worth US$88M; According to her, VCs are becoming more careful, and the growth-stage investment might return back in 2021 as the market is still predicting a recovery post-vaccine. e27 

Startup funding rounds in July: Survival was the name of this game; One of the most notable was Traveloka’s US$250M fundraise amidst COVID-19; New protein sector was a popular sector in July, with companies like Burgreens and Karana announcing their funding rounds. e27

Rachel Lau of RHL Ventures on the kind of thinking that allows innovation; She says the tech industry has changed tremendously over the last 3 years; Now, there’s a lot of emphasis on sustainability and margins; There’s a lot of maturity coming from investors and they are more involved in the ecosystem and building it, instead of just being invested in a company. e27 

This Singapore startup turns jackfruit into plant-based pork; Karana’s whole-plant pork is available shredded or minced, and it’s also catered for Asian recipes; Recently, plant-based products have come under fire for being unhealthy, highly-processed products from food industry executives and health experts. Vulcan Post

Visa joins Thailand Tourism Authority to expand ‘new normal’ digital payments; Visa will be working with financial institutions to support businesses partners in upgrading their payment acceptance service to card payments; According to a recent study, 3 in 5 Thais are forming cashless habits, preferring to pay with cards or through mobile applications over cash. Pattaya Mail

The roadblocks on the smartphone commerce journey; Security concerns and limited usability can be obstacles to buying via smartphones; But consumers use their phones to get an overview of available products; If the smartphone develops into a universal digital wallet, synergy and network effects will emerge that could accelerate the change. Digital Commerce 360

Why we need to stop glamourising startups with fancy labels and focus on real metrics; The unicorn status has reached such ubiquity that it’s hard to kill; The other labels seem to be either a response to global situations or a response to the shortcomings of unicorns; Whether you’re a startup unicorn or camel, your business is still being fuelled by the man-hours and ingenuity you put into the company. e27

HashStacs, Bursa Malaysia to develop blockchain platform for tracking investor holdings; This will also enable investors to automate the movement of funds and securities — increasing liquidity and asset servicing for the market; This is done by enabling the participant banks and the exchange to securely share a single data source that can be trusted.

Startups get insights into overcoming challenges; The world is undergoing a great transformation with four ‘bigs’ playing a leading role — Big Tech, Big Media, Big State and Big Health; Businesses need to abandon traditional, pre-COVID ways of doing things and adapt to the VUCA normal — volatility, uncertainty, complexity and ambiguity. HRM Asia Media

Being geek and gay in SEA: What startup ecosystem can do to foster diversity and inclusion; If you ask an LGBTQ individual in SEA about how they are being treated by society, the answer will vary depending on where they reside; While countries such as Thailand are perceived as more accepting, other countries leave a lot to be desired. e27

The unstoppable rise of fintech in SEA; A collaborative approach is endemic to the fintech industry; It is not a ‘winner takes all situation’ — the market is huge enough to accommodate partnerships, collaborations, to innovate with customer-centric products and carve out new areas of niche services. Tech Collective

The road to recurring revenue for hardware startups; Hardware has one advantage over software: customers understand there is a cost to your product; This allows hardware startups to generate revenue with their first iteration, but it’s unsustainable as the company grows and needs to innovate. TechCrunch

HR-tech firm Globalization Partners (GP) bares full-scale expansion into APAC; This expansion comes on the back of its US$150M funding round; The new APAC ops will support companies based in Asia that are looking to expand both within and outside the region; GP’ claims its solution enables any company to hire anyone, anywhere, in as little as 12 hours into every market around the globe. NewsBytes.ph

Filipino edutech startup touts AI-powered school management system; Its software analyses data that schools from K-12 to colleges can use in their planning and operations; It utilises smart algorithms and AI; The firm claims it has achieved its target to help over 25K students across 10 schools. NewsBytes.ph

Filipino fintech firm Bayad Center to push for more branches, online platforms; To date, it has set up 39K payment touchpoints around the country, with daily transactions of over 10K; Aside from bills payments, it also services domestic and international remittances, insurance sales, medical reimbursement, ferry and airline ticketing, ATM withdrawal, and loan disbursement. Newsbytes.ph

6 leading investors assess the remote-work startup landscape; VCs do not believe that the remote-work services and tooling world is solved; It would be simple to presume that a growing library of apps and services would lead to SaaS fatigue, but the VC group isn’t too worried about the concept. TechCrunch

 How brands in Asia are paving the way for a post-pandemic recovery; As the world navigates the unchartered territories, it is a time for learning, experimenting and adapting; Some brands have shown that when the status quo does not work, new approaches and strategies cannot only help them survive and recover, but also pay rich dividends in the future. Appier blog

Is Cambodia’s startup ecosystem ripe for a new era of growth?; 47% of its population is aged under 25; Combined with a mobile and internet penetration rate of 120% and 84% respectively, it is safe to say tech-savviness resides among the top traits of the population. e27

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