HappyFresh CEO Guillem Segarra
(This article has been updated with the full list of investors, HappyFresh’s fund deployment plans, and quotes from the CEO)
HappyFresh, an Indonesian grocery delivery startup backed by Grab Ventures, has secured US$65 million in a Series D funding round, co-led by Naver Financial Corporation and Dutch investor Gafina.
STIC, LB, and Mirae Asset Indonesia and Singapore, besides existing investors such as Mirae Asset-Naver Asia Growth Fund and Z Venture Capital also participated, the company said in a statement.
CEO Guillem Segarra said HappyFresh will use the funds to enhance its existing operating model together with the partnerships it already has with supermarket retailers across the region.
“This will unlock additional operational efficiency, higher service levels, and quality controls to improve customer experience further. We want our customers to get all the groceries they need at the freshest condition and at an even faster speed, ensuring an effortless online grocery shopping experience,” Segarra added.
HappyFresh will also use a part of the capital injection to put in place plans to improve service offerings, such as more payment methods, better user experience, and assortment, bringing HappyFresh’s service to more families in each country across the region.
Early this month, The Korea Economic Daily reported that HappyFresh was raising US$33 million from existing investors, including Naver, its subsidiary LINE Ventures, and Mirae Asset, as part of its US$65-million target. These investors had earlier injected US$20 million into HappyFresh as part of the Series C round in 2019.
Also Read: Naver, Sea, Vertex invest in Vietnamese VC firm Do Ventures US$50M fund I
Launched in 2015, Jakarta-headquartered HappyFresh delivers fresh, high-quality groceries to thousands of customers in Southeast Asia’s major cities. The firm claims it has been experiencing “unprecedented growth” over the past 18 months.
“We have been on a mission for the past six years to provide freshly handpicked groceries of the highest quality to our customers. Especially over the past years, all our efforts have been put into being there for all the families that have trusted us to bring your groceries to your doorstep safely,”
HappyFresh has moved further towards achieving long-term profitability in a time when it’s proven challenging to sustain a business. In 2020, traffic claims to have grown by 10-20x across the three countries it operates in. “We see a big shift in customers’ behaviour; retention and frequency rates have significantly increased while the overall basket size has been consistently growing. We attribute this to a major shift in the share of wallets from offline to online, which is here to stay,” Segarra added.
Prior to the latest round, HappyFresh has raised three rounds of investments — from Grab Ventures in September 2018, a Series B round led by Dubai-based PE firm Samena Capital in January 2017, and US$12 million in Series A before that.
In January last year, HappyFresh partnered with messaging platform LINE to launch LINEMAN, which provides users with a grocery delivery service on its messaging platform in Thailand.
Southeast Asia’s online economy has hit an inflection point, powered by rapid adoption and fundamental shifts in consumer behaviour. With a corresponding retail market size of US$350 billion, the grocery retail segment in Southeast Asia presents a sizeable and growing market opportunity for HappyFresh.
—
Image Credit: HappyFresh
The post (Updated) Indonesian e-grocer HappyFresh bags US$65M co-led by Naver, Gafina appeared first on e27.