Indonesian popular bakery and pastry chain – The Harvest Patissier & Chocolatier – has recently secured an eight-digit investment from venture capital Falcon House Partners in exchange for a minority stake.
The figure was not disclosed but it is known that the private equity firm typically invests US$15 to US$20 million in a startup.
Founded in 2004, The Harvest claims to be Indonesia’s largest European-style pastry shop chain. It has 30 chain outlets spread across the country, in locations such as Jakarta, Bandung, Surabaya, Medan, and Bali.
The startup has recently been reported scouting for funds to fuel its growth plans, as the company’s founder Lal De Silva, is considering to expand into the Philippines, Malaysia, and Thailand.
De Silva is not new to the restaurant business.
He had previously ventured into space with Negev, a fine dining eatery in Jakarta which remains a popular restaurant. The former chef had also started an upscale French restaurant called Chateau Blanc in the Senopati area of Jakarta, but was sadly closed after a few years.
PT Mount Scopus Indonesia, one of the fastest growing food and beverage group in Indonesia owns and operates The Harvest, alongside with Negev Art Gallery & Bar, Chateau Blanc, Balboni, and Terra.
Founded in 2011, Falcon House Partners specialises in growth capital and middle market investments. The startup primarily invests in the consumer industry, focusing on retail, food products, personal care products, and healthcare – often acquiring a minority stake.
The venture capital recently closed a second Indonesia-focused fund at US$400 million, which is oversubscribed by more than 30 percent. Falcon House Partners attribute this success to continued optimism about domestic consumption and policy reforms in the country.
The food retail space in Indonesia has been generating a lot of local and foreign interest over the last few years. Investors are beginning to take interest in the largely untapped market beyond Jakarta which has been fuelled by a growing middle-class consumer segment.
Besides Falcon House Partners, prominent investors in the food and other consumer-driven sectors in Indonesia include Capsquare Asia Partners, Saratoga, and Northstar group.
In October last year, private equity firm PAG Asia Capital announced an undisclosed investment in restaurant company Paradise Group Holdings. While the same month also saw Yellow Tie Hospitality disclosing plans to invest up to US$ 20 million in Indian chef Harpal Singh Sokhi’s Twist of Tadka restaurant chain.
By Vivian Foo, VCNewsNetwork