Get All Access for $5/mo

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

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur Asia Pacific, an international franchise of Entrepreneur Media.

Pexels

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.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Business News

These Companies Offer the Best Work-Life Balance, According to Employees

The ranking is based on Glassdoor ratings and reviews.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Fundraising

Will Investors Bite on a Pizza Wallet? Find Out on the Wild Season Finale of 'Elevator Pitch.'

On the season 12 finale of "Entrepreneur Elevator Pitch," contestants teach investors to look at ordinary things in a whole new way.

Business News

Here's What the CPI Report Means for Your Wallet, According to JPMorgan and EY Experts

Most experts agree that there will be another rate cut next week.

Marketing

He Pitched His First Business at 12 and Sold a Company for 8 Figures When He Was 23. Here's This Gen Z Marketing Expert's Next Big Move.

Griffin Haddrill built a marketing empire working with artists like Justin Bieber and Lil Nas X. Learn how he tapped into Gen Z's digital culture and turned viral campaigns into a business model.