Astro quick commerce startup announced $4.5 million (over Rp64 billion) funding from a series of VCs, such as Global Founders Capital, AC Ventures, Lightspeed Venture Partners, and Goodwater Capital. Astro will use this fresh fund to build and strengthen the team, as well as expand the business area.
Astro was founded by Vincent Tjendra who previously worked at Tokopedia as AVP and started its operation since September 2021. Astro offers a quick commerce concept, selling more than 1,000 high quality products, ranging from daily necessities, such as snacks, vegetables, fresh fruit and over-the-counter medicines. Orders are scheduled to be received by consumers in 15 minutes at affordable and competitive prices.
Investors said that Astro provides the fastest delivery experience of quick commerce service for Indonesian consumers. It is also supported by a founding team with experience and expertise that synergizes to run quick commerce.
“We firmly believe that Astro’s ‘quick commerce’ service is able to change the way Indonesian consumers buy daily needs, electronics, snacks and pet food. Global Founders Capital is honored to be able to support Astro from the earliest stages,” GFC’s Partner Melvin Hade said in an official statement, Tuesday (2/11).
The fact that Indonesia is positioned at first place as the country with the most active online shopping population gives confidence that Astro is here at the right time to answer the needs of consumers who want fast, economical, and safe products.
As many as 87.1% of internet users in Indonesia also revealed that they use online shopping services to buy certain products, including food and daily necessities. Astro will operate for 24 hours, but follow government regulations during the PPKM period.
Currently, Astro has served requests in the Jakarta area only, with coverage areas of Senayan, Permata Hijau, Gandaria, Kuningan, SCBD, Kemang, Cilandak, Cipete, Puri Indah, Kebon Jeruk, Kelapak Gading, and Pantai Indah Kapuk. It is said that by the end of this year, the company will be able to serve all areas in Jakarta and parts of Greater Jakarta.
Previously, Dropezy also announced Series A funding to launch quick commerce services as its latest solution.
Online grocery competition
The online grocery industry has fierce competition, but still has space for high growth because its penetration is still concentrated in big cities.
A report from Statista said, last year the online grocery market share in this country only reached 0.3%, it is predicted to increase by 20 basis points to 0.5% in 2022. The pandemic that hit the country is said to be one of the main factors that triggered the increase in the popularity of online grocery services among consumers.
Based on data, a further impact of the pandemic apart from changing consumer online buying behavior, is a change in consumer mindset in shopping. “Worried about the economic impact of the pandemic, many Indonesian consumers are becoming more budget conscious. In addition, the priority of purchasing basic necessities and health among consumers is also seen during the pandemic,” the report said.
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Original article is in Indonesian, translated by Kristin Siagian