Legit Group, a cloud kitchen brand operator based in Jakarta, has its eyes on the rest of Indonesia after raising a $13.7 million Series A. The round was led by MDI Ventures, the venture capital arm of PT Telcom Indonesia Tbk, the largest telecom conglomerate in Indonesia. It included participation from Sinar Mas Digital Ventures (SMDV), returning investor East Ventures and Winter Capital.
This funding follows a $3 million seed round raised by Legit Group in 2021, from East Ventures and AC Ventures. Since then, Legit Group says its sales have grown three times.
Founded in 2021, Legit Group currently operates four of its own cloud brands: Pastaria, Sei’Tan, Sek Fan and Ryujin. It covers 30 points in Jabodetabek, the larger Jakarta metropolitan area. Its goal with the new funding is to expand into new areas with large delivery markets, as 80% of its outlets are currently in Jakarta.
Before founding Legit Group, chairman Bran Hendrata spent 15 years in the F&B industry. During that time, he built F&B company Ismaya Group into one of the largest in Indonesia. Hendrata told TechCrunch he became interested in cloud kitchens after witnessing the shift toward online food delivery during the pandemic. He believed the changes in habits would continue after the pandemic, as Indonesia’s growing middle class demanded convenience, like having restaurant-quality food delivered to their homes.
Other cloud kitchen startups in Indonesia include Yummy and Hangry. Legit Group is currently working on an operating system that it says will give it an advantage over other cloud brand operators, but Hendrata said the company isn’t ready to comment on the tech yet since it’s one of the biggest projects they’re working on with the new funding.
The startup plans to expand further in Jabodetabek and will also enter second-tier cities like Surabaya and Malang this year. It also plans to launch new brands that will have different peak hours than its existing ones to more efficiently utilize its kitchens.
In a statement about the investment, MDI Ventures CEO Donald Wihardja said, “Legit Group founder’s experience, Bram who has been successful and profitable in the F&B business world for 15 years, as well as their ability to develop innovative, effective product and marketing strategies, makes MDI Ventures increasingly confident that our support as a major investor will strengthen their position in the F&B industry and accelerate their business growth.