Food tech startup Hangry said on Monday that it secured USD 13 million in its Series A funding round led by Alpha JWC Ventures, with participation from Atlas Pacific Capital, Salt Ventures, as well as Heyokha Brothers.
The startup currently runs 40 outlets in Greater Jakarta and Bandung, where it launched multiple sub-brands for Korean-inspired fried chicken, Japanese cuisine, as well as local delicacies. With the fresh capital, the two-year-old company plans to scale up its business to 120 outlets and 20 dine-in restaurants across Indonesia by the end of this year.
“Hangry’s concept has always been a multibrand, multichannel company, so opening dine-in stores has always been in the pipeline,” said co-founder and CEO Abraham Viktor. “As we have figured out the recipe for cloud kitchen’s success and with society getting ready to return to normalcy, including eating out, it’s time to introduce more Hangry restaurants.” Hangry food is available through its app, as well as through GrabGood, GoFood, and ShopeeFood.
Indonesia has the largest food delivery market in Southeast Asia in terms of gross merchandising value (GMV), which reached USD 3.7 billion in 2020, accounting for around 31% of the region’s total food delivery value, according to Momentum Works.
As food delivery becomes more and more common, cloud kitchens, which are commercial kitchen spaces dedicated to delivery and takeaway meals, have started to take off in the country. Unlike traditional restaurants, cloud kitchens are light in assets, allowing the companies to operate with minimal overhead. They also allow small and medium businesses to enter the sector without requiring significant capital to build physical outlets.
Companies offering similar services are GrabFood, which operates 48 cloud kitchens across Indonesia, GoFood with 27 outlets, and SoftBank-backed Yummy Corp with 70 outlets in Jakarta, Bandung, and Medan.
The unrelenting pandemic is further boosting demand and accelerating the growth of startups in this segment, including Hangry. The firm has opened more than 35 outlets in 2020 and grew 22x over the course of the year. Looking ahead, Hangry aspires to become one of the biggest F&B brands in Indonesia by 2025 and a global culinary business by the end of the decade.