Intudo Ventures, a venture capital firm focused on Indonesia, has closed its investment in local catering business Yummy Corp, people familiar with the development told DealStreetAsia.
Yummy Corp, an affiliate of Indonesia’s F&B and entertainment major Ismaya, is learnt to have raised around $8 million in total at a valuation of over $20 million, one of the sources said.
It is understood that Intudo was the lead investor in the round. The VC firm primarily focuses on homegrown early-stage deals in sectors such as consumer, finance, health/wellness and education. It also selectively invests in markets such as Greater China and Singapore.
Both Yummy Corp and Intudo declined to comment on the funding round.
Yummy Corp provides food solutions for everyday corporate and group clients requirements. Established around 15 years ago, the Jakarta-headquartered company operates over 70 outlets across Indonesia, Singapore, Shanghai, and Dubai.
Yummy Corp runs its services under four business units. It manages employers’ catering on a daily basis under its ‘food service management’ umbrella wherein it partners with corporates to create concepts within their desired budget.
The company also has a corporate branded outlet, wherein it creates dishes based on client requirements. Besides these, a separate business unit enables Yummy Corp to create meeting and event packages.
Its fourth business unit is Yummybox, which acquired online catering startup Berrykitchen for an undisclosed amount in May. The acquisition was made by Yummybox to expand its operations in the field of online catering.
Yummybox, which runs two central kitchens in Tangerang and Central Jakarta, is said to have forged partnerships with over 50 corporates that include prominent names such as Grha Unilever and Ascott Sudirman, among others.
Industry sources say that Yummy Corp is currently betting big on the concept of ‘cloud kitchens’. Cloud kitchens refer to fully-equipped shared spaces for restaurants that largely operate as takeaway outlets with no dine-in facility. Companies across Asia are increasingly adopting the model as it has the potential to spruce up their profit margin significantly per order.
Grab recently announced the expansion of its cloud kitchen network, GrabKitchen, to Bangkok and Ho Chi Minh City after launching the concept in Indonesia in April this year. With its expansion to Thailand and Vietnam, GrabFood claims to be the largest operator of cloud kitchens in Southeast Asia with 20 ‘live’ kitchens and aims to grow its network to over 50 GrabKitchens in five countries, including the Philippines and Singapore, by the end of 2019.
Other cloud kitchen players in Southeast Asia include Singapore-based Smart City Kitchens and Grain, Malaysia-based Dahmakan, Deliveroo and Foodpanda. Indonesia’s ride-hailing behemoth Gojek has invested $5 million in an Indian cloud kitchen company called Rebel Foods.