BDA advises HappyFresh on US$65 million Series D capital raise

BDA Partners is pleased to announce that its client, HappyFresh, has successfully raised US$65m in Series D funding led by Naver Financial Corp and Gafina BV, followed by STIC, LB Investment, and Mirae Asset Indonesia & Singapore. Existing investors such as Mirae Asset-Naver Asia Growth Fund and Z Venture Capital also participated in the current round. The round exceeded initial targets, due to significant demand from new and existing investors. BDA was exclusive financial advisor to HappyFresh on the transaction.

HappyFresh is SE Asia’s leading online groceries platform, headquartered in Jakarta with operations in Indonesia, Malaysia and Thailand.

HappyFresh’s services include online groceries for mass customers and pantry supplies for corporate clients, partnering with well-known retail chains since 2015. Over the past 18 months, HappyFresh has been experiencing unprecedented growth. Many new families across the region have turned to HappyFresh as the safest way to get their groceries delivered during the pandemic.

In 2020, traffic has grown by factors of 10x-20x across the three countries where HappyFresh operates, which has translated into strong growth in topline, as well as both new and repeat customers, and improved economics, providing confidence to investors that HappyFresh is ideally positioned to seize the tremendous opportunity within the grocery space in SE Asia.

Guillem Segarra, CEO, HappyFresh said: “We see a big shift in customers’ behaviour; retention and frequency rates have significantly increased, while the overall basket size has been consistently growing. We attribute this to a major shift in share of wallet from offline to online, which is here to stay.”

HappyFresh plans to use the growth funding to improve user experience, enlist a larger fleet and enhance service offerings and customer support. HappyFresh will also invest heavily in providing an ever more convenient and safe service, by enhancing the existing operating model, together with partnerships that the company has made with supermarket retailers across ASEAN.

Jeff Acton, Partner and Head of Technology, BDA, said: “We are delighted to have advised HappyFresh on this growth transaction, at the intersection of Tech and Consumer. Demand for grocery delivery services has surged across Asia because of the pandemic. We expect to see increasing activity in the space, given the fundamental shift in consumer behaviour towards ecommerce and online retail, across all age groups.”