The online grocery market in the Philippines remains underserved and DART, a Manila-based quick commerce startup, seeks to tap into the market by providing a 15-minute grocery delivery service.
Founded in early 2022 by Harm-Julian Schumacher (CEO) and Tommy Campos (COO), DART currently serves Makati and Mandaluyong areas. However, the company announced plans to expand to new cities after raising $1.3 million in pre-seed funding.
The funding round was anchored by Robinsons Retail Holdings Inc., operator of Robinsons Supermarket, and participated by existing investor Kaya Founders, an early-stage investment firm that backs entrepreneurs in the Philippines and Southeast Asia.
The funding comes as the Philippines represents one of the most attractive markets in Southeast Asia, with a population of 110 million people and an annual grocery spend of above $50 billion.
According to the e-Conomy study by Google, Bain & Company, and Temasek, the online grocery penetration level in the country is only 2% compared to 25% in the non-grocery space.
DART provides various goods, including popular snacks, drinks, fresh produce, dry and frozen goods, and local partnership brands. Unlike the other few players in the online grocery space, the startup promises delivery within 15 minutes from the moment the order is placed.
The partnership with Robinsons provides an extreme value to DART’s business – from the access to a large assortment, advantageous prices, and leveraging Robinsons’ existing supply chain infrastructure, according to DART chief executive and co-founder Harm-Julian Schumacher.
Schumacher was formerly deputy GM (Germany) for European Q-commerce major Gorillas and previously worked with Bain & Company and Rocket Internet.
Robina Gokongwei-Pe, president and CEO of Robinsons Retail Holdings, said Q-commerce provides a unique opportunity to address the needs of consumers that are complementary to its traditional supermarket offering.
“We are excited to team up with DART and together push forward the digital transformation of the grocery industry,” she added.
Robinsons Retail is owned by the Gokongweis, the Philippines’ second richest family. It operates over 3,500 retail formats, including supermarkets, department stores, drugstores, international fashion and beauty specialty stores, and specialty coffee shops.
DART’s move to tap into the country’s online grocery delivery, however, will not come without stiff competition. In June, SariSuki, a Philippine startup that raised $7.1 million in March to bring its total funds raised to date to $10.7 million, launched a new service that promises the delivery of groceries within 15 minutes of being ordered.
Since its founding last year, SariSuki claims to have served at least 60,000 consumers and grown its team to over 100 employees. It started as a Philippine community group-buying startup for daily essentials and groceries.
It then launched Supah, a quick commerce app that aims to deliver groceries in under 15 minutes within its coverage areas.
SariSuki’s latest funding round was backed by several venture capital investors, including Openspace, SIG, Global Founders Capital, Saison Capital, JG Digital Equity Ventures, and Foxmont Capital Partners.
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