Malaysian food delivery startup Dah Makan closes $1.3m seed round

Dah Makan app

Malaysia’s food delivery startup Dah Makan has secured a $1.3 million in a seed round from global venture capital firms NFQ Capital, East VenturesAsia Venture Group and Grupara Ventures as well as prominent angels including the ex-CEO of Nestlé.

Dah Makan plans to use the seed funds to add more talent to its current 60-member headcount and to set up the next market in the region, it said in an announcement on Monday.

“We started Dah Makan with a vision to make food delivery an everyday choice for customers, similar to how Ikea made designer furniture available to the mass market. From our time at foodpanda, we knew SEA was an attractive market since 70 per cent of meals in this region are takeaway, delivery or consumed outside,” said CEO Jonathan Weins.

The recent funding seems to have brought some steam to the funding crunch in the food tech and grocery delivery industry in the region. In fact, according to a recent report hiring at startups was put on hold as they were waiting to secure funds.

In fact, Dah Makan was in the process of raising funds since last year which only completed recently. In an interview with  DEALSTREETASIA earlier last year, Jonathan said, “We are right now finalising a larger round with several global VCs with extensive experience in e-commerce and consumer brands. It’s very important to have the right investors on board as they can have significant influence on the future of a company.”

The team focuses on building a sustainable food delivery business and have developed a system that allows customers to pre-order lunch and dinner up to 45 minutes before delivery through the Uber-like app.

Proprietary routing algorithms developed by the team allows for orders to be efficiently grouped together and bulk delivered. This model, similar to one that Sprig has recently adopted, has meant that each meal delivered since early 2016 has been profitable.

“For over two years, our tech and operations team have worked on solving a stochastic open capacitated vehicle routing problem, one of the hardest problems in computer science.” Christian Edelmann, CTO said.

The range of four daily changing meals, priced between $4.5 – $6 with free delivery, are 40 per cent cheaper than comparable dishes in restaurants and any existing food delivery options, the food delivery firm claims.

The health food delivery startup had earlier raised $320,000 from two angel investors in a seed round over an year ago since when it has grown to cover around 80 per cent of the Klang Valley region in Malaysia and has also crossed its 100,000th delivery.

Also Read:

Malaysia food delivery startup Dah Makan in talks with global VCs for next funding round

Food delivery startup Foodpanda officially exits Indonesia

India: Food delivery startup Swiggy raises $15m in Series D round led by Bessemer

Thailand: On-demand app Lalamove taps into food delivery market

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.