<article>Indonesia-based fast food restaurant chain <a class="tinymce-colortext" style="color: #000080;" href="https://www.dealstreetasia.com/?s=otw">OTW</a> is scouting for investors and is even mulling strategic partnerships that involve offloading a majority stake.</article>

Indonesia-based fast food restaurant chain <a class="tinymce-colortext" style="color: #000080;" href="https://www.dealstreetasia.com/?s=otw">OTW</a> is scouting for investors and is even mulling strategic partnerships that involve offloading a majority stake.
“We have grown the company at almost double digit rates since its conception, and have brought it to a point where it is currently among the top three street food outlets in Indonesia,&#8221; says OTW co-founder Raymond Hadianto. The firm has hired Eempat Kapital to lead the process of seeking investors.
OTW currently has 10 outlets, with the largest one based in Kelapa Gading. It plans to open four new outlets in markets such as Bali, Balikpapan, Pontianak, and Makassar, targeting the middle and lower income consumer segments. In addition, the company plans to increase the number of outlets to more than 20 by end of 2018. Also on the cards is hiring more people to add to its existing 50-people-strong employee base.
OTW&#8217;s founders are open to an IPO or other means including a trade sale to a financial or strategic investor that could involve an exit by the end of 2018. Raymond says there is growing interest in the food and beverage segment in the country.
&#8220;There is lack of cheap, good quality fast food restaurant chains in tier 2 and 3 cities in Indonesia, and there is enough room for top three players to exist and do well together, making this segment an attractive buy,&#8221; he added.
OTW claims to run profitable operations despite being in a price-sensitive segment. Besides its own outlets, it also employs a franchise model, whereby it earns around Rp 400 million per outlet as well as 5 per cent of the revenues. The company expects to at least double its franchise revenues in the coming 1-2 years.
Investor interest in the space is also fuelled by a significant number of small players in the food retail space looking for funds to scale up. Prominent investors in the food and other consumer-driven sectors in Indonesia include Capsquare Asia Partners and Creador, which typically make small to mid-size investments in the $5-20 million range, and larger players such as Falcon House Partners, Saratoga Capital and the Northstar Group.
DEALSTREETASIA had earlier reported that Indonesia’s largest kebab chain, Baba Rafi, was looking at selling a majority stake.
Clearly, the food retail/specialty food sector in Southeast Asia has been abuzz with deal activity in the last few months. In October last year, private equity firm PAG Asia Capital announced an undisclosed investment in restaurant company Paradise Group Holdings. The month also saw Yellow Tie Hospitality disclosing plans to invest up to $20 million in Indian chef Harpal Singh Sokhi’s Twist of Tadka restaurant chain. In September, US-listed Yum Brands’ China operations received a $460 million investment from Primavera Capital and Ant Financial Service Group. This was preceded by Mekong Kapital’s $6.9 million investment in Vietnam’s Wrap and Roll.
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Indonesia's fast food restaurant chain OTW is scouting for investors and is even mulling strategic partnerships that involve offloading a majority stake.

Exclusive: Indonesia street food chain OTW seeks investors, eyes valuation of at least $5m

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Exclusive: Indonesia street food chain OTW seeks investors, eyes valuation of at least $5m

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