South-east Asian F&B startups raised record US$461m in 2021
STARTUPS in South-east Asia's food and beverage (F&B) scene bagged US$461 million in venture funding across 49 deals last year, the highest level in the past decade, according to a report released on Tuesday (Feb 8) by Indonesian early-stage investor Alpha JWC Ventures.
These startups - comprising fresh F&B, food delivery, restaurant discovery apps and online grocery services - have raised US$900 million in private capital over the past decade.
The bulk of deal activity is in Indonesia, where startups clinched US$644 million, according to data compiled from regulatory filings and DealStreetAsia. The country has also seen a proliferation of cloud kitchens coming up with their own brands, with major players including Grab and Gojek's GoFood.
That said, the report noted: "There's no room for complacency since Indonesia has a long way to go compared to key markets like China and the US. Despite the tech-driven change in the past 5 years, Indonesia remains underpenetrated."
Online food services spending in Indonesia only comprised 2 per cent of food services in 2019, in contrast to 9.5 per cent in the US and 13 per cent in China. Food delivery penetration was 9 per cent in Indonesia in 2020, less than half that of the US and China.
Looking ahead, Eko Kurniadi, partner at Alpha JWC, is bullish. The venture firm has paid attention to the F&B theme following the emergence of China's Luckin Coffee and hotpot chain Haidilao, which scaled at unprecedented speed.
Alpha JWC is invested in Indonesian coffee chain Kopi Kenangan, which hit unicorn status late last year, after raising US$96 million in its Series C round.
"While Indonesia has traditionally been very consumption-driven, with a rising middle-income segment, the tech savvy millennials and Gen Z have acted as an accelerant," said Kurniadi.
"Since they spend several hours a day on the internet and social media, a new F&B brand can quickly acquire awareness that took decades for a legacy brand to build." READ MORE:
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