ISMAYA GROUP, a leading F&B lifestyle brand in Indonesia, announced on Wednesday that it has raised $18.1 million led by East Ventures (Growth Fund) with participation from existing investor Falcon House Partners.
The funding comes as Indonesia’s hospitality industry limps back to normal after about two years of social restrictions taken to prevent COVID-19 infections, which included travel bans, mall closures, and limited restaurant capacities.
As consumers return, ISMAYA plans to use the fresh funding to meet the rising demand for F&B offerings, its proprietary lifestyle experience, and its growing food delivery arm. In tandem, ISMAYA will also strengthen its tech capabilities to improve customer experience.
“The fact of the matter is, people are missing the human touch and its physical tactility,” Bram Hendrata, CEO of the ISMAYA GROUP, said in a statement. “For more than two years, COVID-19 left people cooped up, creating a sense of frustration from lockdowns, work from home (WFH), physical distancing, and other restrictions. These severely disrupted the F&B lifestyle industry, especially the dine-in experience, festivals, and the clubbing scene.”
Founded in 2003, the ISMAYA GROUP, according to its website, has more than 60 properties including restaurants, lounges, and festival experiences in cities including Jakarta and Dubai.
ISMAYA claims to have returned to its pre-pandemic revenue levels, equipped with an increased efficiency after the pandemic forced it to pivot towards food delivery and implementing efficiency measures.
Roderick Purwana, East Ventures managing partner said he witnessed the company’s resilience during the pandemic. “Currently, as we are seeing a return to normalcy as we get out of this pandemic, we are certain to experience growth and excitement brought by the ISMAYA GROUP moving forward,” he said in the statement.
East Ventures also invested in Ismaya-backed cloud kitchen company Legit Group. The $3 million seed round was joined by AC Ventures. Besides Legit, East Ventures has also invested in the lifestyle marketplace Bobobobo and data-driven loyalty consulting and technology firm MEMBER.ID.
For the private equity firm Falcon House Partners, ISMAYA is not the only portfolio in the hospitality industry. The firm also has a stake in the Indonesian bakery and pastry chain The Harvest and was reportedly seeking an exit from its investment in lifestyle and hospitality brand Potato Head Family and was reportedly in talks with various parties to sell its stake in the F&B portfolios managed under PT Eatwell Culinary.