Indonesia’s virtual multi-brand restaurant chain, Dailybox Group, has raised $24 million in a Series B funding round led by Northstar Group and Vertex Growth, the company announced on Monday. Existing investors Vertex Ventures Southeast Asia and India (VVSEAI) and Kinesys Group also participated in the round.
Dailybox plans to use the fresh investment to expand its business across the country, especially in tier 2 and 3 cities, enhance tech capabilities, and add more food and beverage (F&B) brands.
“Dailybox Group was founded with the goal to disrupt the F&B industry in Indonesia with various practical comfort food dishes,” said Dailybox co-founder Kelvin Subowo. “Our strategic expansion plan in non-metropolitan cities will also create many jobs to support the local economy and consumers while strengthening our presence nationally,” he added.
The firm has over 150 outlets in more than 20 cities across Indonesia.
Dailybox was founded in 2018 and claims to have grown 16x in revenues since its seed funding stage. During the pandemic, the group recorded over a 100x increase in transactions.
Dailybox Group has three brands — Dailybox, which offers comfort food in the form of rice boxes; Shirato, which sells sushi-burrito menus; and Breadlife, a bakery brand the firm acquired last year.
“Dailybox Group has developed the formula to bring the best of Indonesia’s local cuisines to the wider consuming public from Sumatra to Papua,” said Vertex Growth Managing Director Tam Hock Chuan in a statement.
Virtual restaurants or cloud kitchens are thriving in Indonesia following the rise in food deliveries over the past five years. Dailybox’s offerings are available on GrabFood, GoFood, ShopeeFood and TravelokaEats.
Online food delivery is estimated to contribute around 78.4 trillion rupiah ($5.2 billion) to Indonesia’s digital economy by 2021. About 72% of consumers have more than one food delivery application on their smartphones, according to a survey conducted by Tenggara Strategics based on 1,200 consumers in six cities.
Dailybox faces competition from other startups in this space such as Hangry and Yummy Corp. In April, Hangry raised $22 million in a mix of debt and equity from various investors, including Journey Capital Partners, Alpha JWC Ventures and Genesis Alternative Ventures. Meanwhile, Yummy Corp bagged undisclosed funding in a Series B+round last year from BRI Ventures’ Sembrani Nusantara following a $12-million Series B led by SoftBank Ventures Asia in 2020.