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Food start-up Lemonilo raises $36 million for regional expansion
The start-up, best known for preservative-free instant noodles, aims to replicate its domestic success by expanding into regional markets.
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L
emonilo, a start-up that produces and sells healthy foods, announced on Monday that it had raised US$36 million in its series C funding round to expand local distribution and penetrate overseas markets.
Co-CEO Shinta Nurfauzia said the company aimed to strengthen nationwide distribution to beyond its current network of more than 200,000 point of sale (POS) outlets.
Lemonilo has more than 40 product categories, ranging from instant noodles to snacks and spices, and claims that all its products are free of preservatives, food coloring and flavor enhancers. It also operates a namesake e-commerce platform.
“As a growth-stage company, we have proven that our business model works in Indonesia, so we are planning to bring our concept to other countries as well, starting with our neighbors,” Shinta said in a press release.
Lemonilo's business has grown on the rise in online grocery shopping, which has become the status quo since the onset of the COVID-19 pandemic.
The grocery segment was the biggest driver in the e-commerce industry during the first six months of 2020, according to a report from RedSeer.
The management consulting firm has projected that gross merchandise value (GMV) of Indonesia’s online grocery market will reach $13 billion by 2025, equivalent to a compound annual growth rate (CAGR) of 51 percent from just $7 million in 2018.
Read also: Fresh meat: VCs pour funds into burgeoning e-grocery segment
“We believe more people want to be healthier, especially after COVID-19 hit our country. Therefore, through this funding [round], Lemonilo will continue to focus on the Indonesian market while innovating new products like Lemonilo has always [done],” said co-CEO Ronald Wijaya.
The start-up’s latest funding round was backed by Sofina, a Brussels-based family-owned investment company, as well as Sequoia Capital India, which participated in the series B round in May.
“This investment has a strong strategic fit with Sofina’s goal to invest in purposeful companies, and is a testament to our willingness to increase our investment activity in Indonesia,” said Maxence Tombeur, a member of Sofina’s executive committee.
