The ongoing COVID-19 pandemic has forced many startups to redirect their business, especially for those working in a sector that is directly impacted such as F&B or travel and tourism. We had seen changes in business strategies in newcomers such as Travelhorse and even more established companies such as PatSnap.
Cooklab, an Indonesia-based startup, was also forced to take this drastic measure.
Founders Clarence Eldy and Kartika Dwi Baswara were introducing the farm-to-table business concept in Bali when they first realised the need to pivot. Their business was actually doing quite well as they have secured more than 10 companies and 150 farmers on board by March.
“It all began when the government of Bali decided to enact full lockdown in April. At that time … 100 per cent of our demand came from restaurants and cafés in the most tourist-dense areas. As the restaurants and cafés closed –they did not even sell takeaways or delivery– we decided to pause our operation,” Baswara writes in an email to e27.
But in May, a group of farmers reached out to the founders, asking if they were able to help them sell the existing fresh produce.
“They have dropped their price, but their supply was still having a surplus,” Baswara adds.
But then she and Eldy noticed a new trend. As customers were unable to go to these restaurants and cafés, they pursued a new hobby instead, with cooking and baking being some of the most popular. This trend bloomed in markets where the lockdown measures were implemented, including in Indonesia.
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“We knew B2C was the way to keep our business running, but we realise there are so many platforms selling fresh produce out there. So we thought, why not explore the idea of Blue Apron from the US market? After a couple of in-depth interviews with our potential users, recipe testing and everything else, Cooklab was born,” Baswara explains.
Behind the kitchen
As a foodtech startup, Cooklab offers ready-to-cook meal kits containing pre-measured ingredients and cooking guide for customers at home. Their recipe was designed to be as easy-to-follow as possible; it is also available on various e-commerce platforms in addition to its own dedicated mobile app. The service is currently available for customers in Jakarta and Surabaya.
In Indonesia, the startup was not the first to introduce the concept of ready-to-cook meal kits. BlackGarlic has launched such service in 2015 (and ceased operation in 2017); Berrykitchen has also experimented with the concept prior to its acquisition by YummyCorp.
However, due to the timing of their launch, Cooklab is able to gain customers’ attention in a short time. The startup says that its user numbers have reached 250 people in just two months since its introduction in Surabaya, and just two weeks in Jakarta.
But pivoting to a new business strategy is not without challenges. For Cooklab, it comes in the form of starting a new business from home, with a team that is spread in different parts of the city.
“The toughest challenge was not being able to meet your new team members physically during the first three months. We want to know each one of them on a deeper level, but it’s something that is difficult to achieve virtually,” Baswara says.
“We tried a couple of things, from throwing virtual town hall and delivered some meals to each of our team members’ home, having a consistent weekly meeting, and one-on-ones,” she adds.
Beyond the kitchen
Prior to starting Cooklab, Baswara and Eldy were alumni of Singapore-based incubator programme Antler in 2019 where they began their entrance into the fresh produce industry. Though they made their debut in Surabaya, the company is run by a team of 11 in Jakarta.
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In the near future, to support the growth of its business, the startup aims to secure its seed funding round. It plans to use the funding to support business line expansion and further market penetration in Jakarta and Surabaya.
Previously, the startup has closed a US$100,000 pre-seed funding round from an angel investor in July.
“We realise that many potential angel investors are currently wary about investing and choosing portfolios. However, we remain optimistic that we will be able to conclude our seed fundraising round at the end of January 2021,” Eldy states in a press statement.
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Image Credit: Cooklab
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