Kedai Sayur, which translates to “vegetable kiosk,” is an Indonesian startup that uses technology to facilitate the distribution of fresh vegetables to hawkers. The company announced that it has raised USD 1.3 million (IDR 17.3 billion) in a seed round led by East Ventures.
Founded in 2018, the young startup partners with farmers and hawkers for product sourcing and distribution. The founders of Kedai Sayur recognize that it is still common for hawkers to sell all manner of food and produce—vegetables, meat, spices, fruit, and more—on the streets in residential areas, but often struggle to acquire quality commodities at reasonable prices because of the middlemen within the supply chain, which include wholesale buyers who purchase from farmers in bulk and vendors at the central market. This leaves hawkers with low margins.
With its technology, Kedai Sayur replaces the whole supply chain by connecting hawker partners with farmers directly. The partner can browse for fresh commodities through Kedai Sayur’s app and pick them up and the nearest drop-off point. The company also offers delivery vehicles called Si Komo, which stands for “Kedai on Mobile,” to replace conventional vegetable carts. The new vehicles help partners reach their door-to-door customers in a more convenient way. Kedai Sayur also provides financing programs for partners who have limited capital to purchase the vehicle.
According to an official press statement, more than 2,000 vegetable hawkers have joined Kedai Sayur’s platform in the Greater Jakarta area, and the number continues to grow by 60% each month. Moreover, 80% of the partners actively sell their products and the company’s gross merchandise value has grown fivefold in the last four months.
Kedai Sayur will utilize the fresh investment to expand its partner network and work with more vegetable hawkers.