Kravve.co has just announced its successful ECF fundraising campaign (Equity Crowdfunding) amounting to 1,255,000 RM on PitchIN, in which 159 investors participated with a total offer of 11.11%. Their highest single investment was RM222,500.
They fell short of their target of RM 1,500,000 but managed to exceed their minimum target of RM 100,000.
For those unfamiliar with Kravve.co, they are a home cooked meal marketplace that works like an Etsy for mom and pop stores and grocery stores, aiming to empower chefs and micro-sellers to make a living from home from making money through e-commerce.
They currently have over 1,000 sellers on their platform, as well as 70,000 users to date, and they saw the pandemic as an opportunity for them to grow ten times more over the past year.
Currently they are backed by two VCs, 1337 Ventures, a local, and SOSV, a global VC based in San Francisco, from which they have received $ 100,000 (RM 408,867).
Not her first funding rodeo
Kravve raised $ 5,000 in the pre-seed phase in February 2018 and $ 120,000 in the seed phase in March 2020. The pre-seed phase was supported by 1337 Ventures, while the seed phase was supported by Mobile-Only Accelerator (MOX) headquartered in Taipei.
Yong Lin, co-founder and CEO of kravve.co, said that 20% of that will be earmarked for expansion into Singapore, 35% for marketing efforts, and the remaining 45% for expansion with these new funds, to build workforce.
"Next on our agenda is to work to be the leading impact-driven food tech company focused on empowering micro-sellers across Southeast Asia and bringing 10,000 micro-food companies on board," he added.
Riding on the rising trends
Kravve.co's main focus has always been on their role in managing inquiries, sales and deliveries so that sellers can focus on production.
Companies with a high volume of orders would find this service attractive as it would save the headache of manually managing hundreds of orders through WhatsApp, especially if you are a small team.
It can be presumed that Kravve.co's solutions have appealed to investors, as the number of domestic micro-sellers who have also popped up about the pandemic has increased sharply. Some brands we wrote about recently include ButterBae, Sweet Hato, the Cookies Bar, FowlBoys, and more.
While many of these micro-businesses have taken root on Instagram because many of them are young and tech-savvy Malaysians, there is a segment of them from the older generation who may not be as digitally oriented. The latter can fall behind if it isn't about sites like Kravve.co, especially during the pandemic when everything needs to be digitized for visibility.
Their ECF campaign also signals promising support for platforms in the industry like Poptron (a virtual bazaar-like platform for local micro-brands) and GoodFinds (also for local micro-brands). In fact, Poptron raised $ 1 million in seed capital earlier this year.
So it's no wonder that more and more similar platforms are appearing, although Kravve.co has the advantage of being longer established and having a market niche that from now on only focuses on F&B micro brands.
- Learn more about Kravve.co's fundraising Here.
- You can read more about Kravve Here.
Selected image source: Jean Heah and Teh Yong Lin from Kravve.co (Beamstart)