Indonesian Quick-Commerce Startup Astro Raises $60 Million The newly raised fund will be used to improve the customer service and expand the team size
By Teena Jose •
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Astro, a quick-commerce platform that provides 15-minute grocery delivery, has raised $60 million in Series B funding round led by Accel, Citius (Biopharmaceutical corporation) and Tiger Global. Existing investors AC Ventures, Global Founders Capital, Lightspeed and Sequoia Capital India also participated in the funding round, lifting its total funding to $90 million since the business launched just nine months ago. The fresh fund will be used to improve the customer service and expand the team size in 2022.
"Grocery delivery is notoriously cash-burning. A large chunk of the business's cost comes from delivery, which will come down over time as we deploy for hubs and subsequently reduce the delivery distance areas," said Vincent Tjendra, co-founder and CEO, Astro, in a statement.
The startup has started collaborating with local businesses to launch its private label, starting with coffees, breads and seasonal treats. This is an extension of its initiative to collaborate with local farmers that enables customers access to its fresh fruit and vegetable selections within 15 minutes, claimed the startup in a statement.
Founded in 2021 by Vincent Tjendra, Astro offers 15-minutes grocery delivery services 24 hours a day at nearly 50 locations in Jakarta's broader metropolitan area. The company has opted for a cash-intensive model, as it owns the entire user journey going from inventory sourcing, supply chain to delivery.
"Revenues grew more than ten times over the past few months and downloads hit 1 million. The company's customers range from working professionals to young parents at home who seek convenience," said Tjendra.
According to reports, like many other countries, Indonesia also got a boost in the e-commerce sector during the Covid pandemic. But e-grocery adoption in the country remains low and estimated to be just 0.5 per cent, compared to the South Korea's 34 per cent in 2020. Astro tries to exploit this opportunity. Currently, the e-grocery delivery market in Indonesia is projected to reach $6 billion by 2025.
