Farmers across Indonesia stand to benefit from higher income and better access to a market already worth USD 120 billion a year following a successful round of fundraising for Sayurbox, the nation’s leading B2C e-Grocery platform. IFC, a member of the World Bank Group, has invested USD 10 million in Sayurbox as part of a USD 120 million fundraising that includes injections led by Alpha JWC Ventures and Northstar. The funds will enable Sayurbox to scale up its digital platform and dramatically boost direct farm-to-plate access nationwide.
Indonesia is home to the fastest-growing grocery market in Southeast Asia with groceries being one of the nation’s largest consumer segments. But the agriculture sector, while a key component of the economy and employing some 33 million farmers, faces significant issues from logistical barriers to multiple middlemen along agricultural value chains, all of which erode income for producers. Sourcing directly from farmers enables Sayurbox to disrupt the traditional supply chain by cutting out middlemen, in turn providing farmers with consistent demand planning, ordering, as well as better and more stable prices.
IFC will also offer knowledge, innovation and capacity building, and help Sayurbox to introduce financial products to farmers to grow their business. In addition, IFC will utilize its expertise in cold chain infrastructure, data management and technology to provide a climate-smart approach that can sustain the company’s next growth stage.
Sayurbox currently serves one million customers on the islands of Java and Bali. While the platform now works with more than 10,000 farmers, it’s seeking to boost that to 40,000 by 2024. Its platform offers more than 5,000 products, from fresh produce, meat and poultry to snacks and ready-to-eat dishes. The investment will help Sayurbox to use digital technology for improving supply-chain efficiencies, which is expected to have a positive impact on harvest loss in Indonesia that is estimated at almost 50%.