Indonesia-based on-demand grocery app HappyFresh today announced that it has raised a $65 million Series D. The round was led by Never Financial Corporation and Gafina BV, with participation from STIC, LB and Mirae Asset Indonesia and Singapore. This also included returning investors Mirae-Asset Naver Asia Growth Fund and Z Venture Capital.
The company’s previous round of funding was a $20 million Series C announced in April 2019.
Founded in 2014, HappyFresh was the first Instacart-style grocery delivery service to be launched in Southeast Asia. It expanded into five markets before closing its operations in Taiwan and the Philippines in 2016. It continues to operate in Indonesia, Malaysia and Thailand.
In a press release, HappyFresh said it is experiencing “unprecedented growth” over the past 18 months as customers turn to grocery delivery during the pandemic, with traffic growing 10x to 20x across its three countries.
Guillaume Segara, CEO of HappyFresh, said in a statement, “We see a huge shift in customer behavior; retention and frequency rates have increased significantly while overall basket size continues to grow. We attribute this in part to the wallet. Giving the big change from offline to online, that’s here to stay.
The new funding will be used to scale up HappyFresh’s operations, including growing its fleet of drivers. The company also plans to add more payment methods, improve the user experience, and expand its assortment of items.