HappyFresh Secures $65M Funding Led by Naver Financial & Gafina

HappyFresh Secures $65 Million in Series D Funding

HappyFresh, an on-demand grocery application originating in Indonesia, has announced the successful completion of a $65 million Series D funding round.

Naver Financial Corporation and Gafina B.V. spearheaded this investment, with contributions from STIC, LB, Mirae Asset Indonesia, and Mirae Asset Singapore.

Returning Investors Show Continued Confidence

The funding round also saw participation from existing investors, including Mirae-Asset Naver Asia Growth Fund and Z Venture Capital, demonstrating ongoing belief in HappyFresh’s potential.

This latest financing follows a $20 million Series C round that was publicized in April 2019.

Early Pioneer in Southeast Asian Grocery Delivery

Established in 2014, HappyFresh was the initial grocery delivery service modeled after Instacart to be introduced within the Southeast Asian region.

The company initially broadened its reach to encompass five distinct markets. However, operations in Taiwan and the Philippines were subsequently discontinued in 2016.

Currently, HappyFresh maintains active service in Indonesia, Malaysia, and Thailand.

Pandemic-Driven Growth Fuels Expansion

According to a company press release, HappyFresh has witnessed exceptional growth over the last 18 months.

This surge in demand is attributed to a shift towards grocery delivery services during the pandemic, resulting in a 10 to 20-fold increase in traffic across its operating countries.

Shifting Consumer Behavior and Future Plans

Guillem Segarra, CEO of HappyFresh, stated, “A substantial change in consumer behavior is evident, with notable increases in both customer retention and purchase frequency.

Furthermore, the average transaction value has consistently risen, indicating a lasting transition of spending from brick-and-mortar stores to online platforms.”

The newly acquired funds will be allocated to expanding HappyFresh’s operational capabilities, specifically by increasing the number of delivery drivers.