To further expand cloud kitchen business, Legit Group raised US $3 M seed funding

Legit Group, an Indonesian cloud kitchen company, has raised IDR 43 billion (US $3 million) in seed funding from East Ventures and AC Ventures.

According to a news release, the firm plans to utilize the additional funds to aggressively expand locations in order to reach a larger client base, as well as develop and promote new delivery-centric brands.

Legit Group presently has 45 distribution sites and runs three food and beverage brands: Pastaria, Sei’Tan, and Juju Chikin. By the end of the year, it intends to introduce two additional brands and have 135 distribution locations.

“With my experience as Founder of Eatwell Group and strategic partnerships with Ismaya Group and Yummy Corp, we are in the position to be able to use our current infrastructure to quickly expand our operations without heavy up-front investment expenditure. This allows us to widen our coverage quickly and thus lowering the delivery charges and provide a better overall experience to the customers who wish to order our products,” said Sumarno Ngadiman, CEO and Co-Founder Legit Group.

“We have been in the F&B business for more than twenty years and we will be able to draw on our experiences and create the products that customers want with the utmost standard of food safety and handling practice,” he stressed.

Legit Group, which was founded in February through a strategic alliance with Ismaya Group, an Indonesian F&B and leisure conglomerate, Yummy Corp, an online catering and cloud kitchen firm, and SME incubator GK Hebat, has expanded 9.5 times since its start. It also claimed to have had a 61% rise in income in only one month, from June to July.

As meal delivery services become increasingly popular during the epidemic, the number of cloud kitchen firms operating in Indonesia is rapidly increasing. Tech-savvy Millennials in the country also play a significant part in fuelling the expansion of this category, as per the report.