After a strategic review, Mandiri Capital Indonesia marks its return to investing with DORÉ by LeTAO

Mandiri Capital Indonesia (MCI), the corporate venture capital arm of Bank Mandiri, has made its first investment under a new investment strategy, backing premium Japanese-inspired cakes and gifting brand DORÉ by LeTAO.

Founded more than a decade ago, DORÉ by LeTAO has grown to 22 stores across four major markets: Jakarta, Bandung, Surabaya, and Bali, making it one of Indonesia’s established premium Japanese-inspired cakes and gifting brands.

The investment, whose value was undisclosed, marks MCI’s return to the market after nearly two years of pausing new deals to reorient its investment strategy and upgrade its organisation capability, capacity and quality. As the first investment under MCI’s new “mini private equity” approach, it signals a broader shift away from technology-led investing toward profitable businesses operating in consumer, retail, food & beverage (F&B), and healthcare. 

As Bank Mandiri’s digital capabilities continue to advance, MCI concluded that its future no longer lies solely in backing technology companies. Instead, the firm has shifted its focus toward businesses with proven fundamentals, healthy financial performance, and the capacity to scale sustainably.

“We realised we needed to rethink where MCI should invest next. Technology alone was no longer the answer,” said Ronald Simorangkir, CEO, MCI.

Although cakes and gifting retail are not new, MCI believes DORÉ by LeTAO distinguishes itself through the strength of its operating model. Its smaller-format stores, lean staffing structure, and disciplined operations allow the business to maintain healthy margins while continuing to expand.

“What attracted us wasn’t just the product. It was the business model. DORÉ by LeTAO operates with lean stores and a lean team, allowing strong gross margins to translate into healthy EBITDA,” said Wisnu Setiadi, Acting Chief Investment Officer, MCI.

For Andy Pangestu, Co-Founder & CEO of Omiyage Group (DORÉ by LeTAO), choosing MCI was never simply about securing capital. What convinced him was the shared long-term vision both parties had for the business. In his view, successful founder-investor partnerships are built long before an investment is made, through trust, open conversations, and mutual understanding. 

“From the first meeting with the MCI team, I felt they genuinely wanted to grow together. What stood out most was the people. The second was the consistency,” said Andy.

With fresh capital, Andy plans to accelerate DORÉ by LeTAO’s next phase of growth by expanding its retail footprint across Greater Jakarta, increasing production capacity through new equipment and centralised facilities, and bringing more Japanese brands and products to the Indonesian market. At the same time, he remains committed to delivering the quality and customer experience that have defined DORÉ by LeTAO from the beginning, while continuing to innovate for the years ahead.

Strengthening synergy with Mandiri

MCI’s biggest transformation was not just expanding into new sectors, but redefining both where and how it invests. The firm has moved beyond a technology-led investment strategy to focus on businesses with proven fundamentals, strong corporate governance, healthy operating cash flow, and the resilience to perform across different economic cycles. 

For MCI, one of the strongest indicators is whether a company has already proven its ability to survive periods of uncertainty, including the COVID-19 pandemic. “We consciously shifted our investment target toward companies that have already experienced the ups and downs of building a business,” said Ronald.

He describes the firm’s approach as a “mini private equity” model, applying private equity principles to businesses that are smaller in scale but already have solid financial foundations. 

“MCI’s investment philosophy has evolved beyond traditional venture capital metrics. From conducting more comprehensive due diligence to prioritising profitability over rapid expansion, MCI is looking for founders who can build sustainable businesses, not just fast-growing ones,” said Wisnu.

While MCI’s investment focus has evolved, creating value through the Bank Mandiri ecosystem remains central to every investment. Beyond financial returns, MCI also looks at how portfolio companies can create value across the wider Bank Mandiri ecosystem through financing, banking services, payment solutions, and commercial partnerships. 

As a regulated corporate venture capital firm, MCI also discusses long-term exit planning with founders from the beginning of every investment, ensuring both parties share the same expectations for the partnership. 

“From the beginning, we communicate that every investment will eventually have an exit,” said Ronald.

Revisiting due diligence and governance

Today, every investment at MCI is reviewed not only by its internal team but also by independent financial, tax, and legal advisors. The goal is to identify risks and blind spots that may not be visible through internal assessments alone.

The process can be demanding for founders because nearly every aspect of the business is examined. For MCI, however, that level of scrutiny is essential to building companies that are ready for long-term growth.

MCI’s due diligence extends beyond assessing the business itself. The investment team also works with founders to agree on how new capital will be deployed, providing greater visibility over how the business will scale after the investment. 

“It’s no longer just about legal documents or risk management. Every use of funds is agreed during due diligence and locked into the Shareholders’ Agreement,” said Wisnu.

The same principle applies after the investment is completed. MCI works with portfolio companies to strengthen governance, operating procedures, and internal frameworks that can support the business as it grows. The firm has adopted a more structured investment process inspired by banking practices, with documentation, governance frameworks, dividend policies, investment conditions, and fund disbursement procedures agreed from the start.

“Trust alone isn’t enough. Everything should also be documented properly,” said Ronald.

Trust starts before the term sheet

MCI’s stronger emphasis on governance reflects a broader trend across the investment industry. According to Stephanie and Abimata Putra, partners at Hiswara Bunjamin & Tandjung in association with Herbert Smith Freehills Kramer, investors today expect greater transparency and stronger governance before committing capital. 

Stephanie explains that due diligence helps investors understand exactly what they are buying, while identifying compliance gaps and clarifying how risks should be allocated between the parties during and after the transaction.

“Due diligence is about knowing exactly what you’re buying. It helps surface compliance gaps, but more importantly, it starts the conversation about risk allocation between investors and founders,” said Stephanie.

For Abimata Putra, governance ultimately creates consistency in the way a company operates, allowing trust to extend beyond individuals and into the organisation itself. 

“Robust governance creates predictability and repeatability. Those are the qualities investors look for because they build trust,” said Abimata Putra.

That principle is reflected in the partnership between DORÉ by LeTAO and MCI. By placing strong corporate governance at the centre of their collaboration, both parties are building a foundation for a long-term relationship. Clear governance helps manage operational complexity, reduce legal and business risks, and foster the trust needed to support sustainable growth as the business continues to expand.

“Indonesia has tremendous opportunities, but execution is key. Due diligence and corporate governance are part of good execution, and they ultimately create value when speaking with investors,” said Stephanie. 

Growth through partnership

One principle sits at the centre of MCI’s investment philosophy: founders should remain in control of building their businesses. Instead of stepping into day-to-day operations, MCI focuses on strengthening the financial discipline, governance, and long-term planning that help businesses grow sustainably while respecting the founder’s operational expertise.

“We’re not asking founders to change who they are. We’re helping them build stronger foundations for the businesses they’ve already created,” said Ronald.

That same philosophy also shapes the way MCI works with founders. The firm values businesses that demonstrate operating discipline, sound financial management, and the ability to build sustainable companies over the long term. 

Looking ahead, MCI will continue focusing on sectors tied to everyday consumer needs, including consumer goods, F&B, healthcare, and lifestyle. Ronald says those priorities are guided by long-term market fundamentals rather than short-term trends. The firm also continues to review new opportunities as markets evolve. Every investment decision is guided by an internal framework backed by research and analysis. 

Beyond this investment, MCI’s partnership with DORÉ by LeTAO reflects the firm’s growing focus on supporting established Indonesian businesses with strong operating fundamentals while connecting them to the wider Bank Mandiri ecosystem. By combining disciplined investment practices with long-term partnerships, MCI aims to strengthen domestic enterprises, create sustainable value, and support Indonesia’s broader economic development priorities. 

For Andy, the partnership with MCI is about more than funding. It marks the beginning of the company’s next chapter as DORÉ by LeTAO expands its presence and introduces more Japanese brands to Indonesia.

“The new investment gives me the energy to keep innovating and continue the adventure,” said Andy.