*This article is adapted from * DealStreetAsia

Indonesia-based multi-brand F&B operator DailyCo is in advanced talks to acquire multiple food brands this year as part of its broader M&A strategy, a top executive told DealStreetAsia.

In an exclusive interview, DailyCo founder and CEO Kelvin Subowo said the company is currently evaluating more than 15 food brands for potential acquisition, including Dunkin' Indonesia; and PT Inti Prima Rasa, a well-known food brand and catering service for B2B clients.

However, he emphasised that none of the deals have been finalised yet. One or two acquisitions are likely to be closed in the coming weeks, he said, but declined to disclose further details due to confidentiality reasons.

"We're always looking [to acquire]," Subowo said. "Acquisition is our fastest lever for growth-especially when the brand has solid fundamentals, untapped potential, and the scale to plug into our supply chain. We're not interested in trendy businesses. We're focused on substance, margin structure, and synergy."

According to sources close to the matter, DailyCo may acquire the Dunkin' Donuts Indonesia-a debt-ridden legacy brand-business for a token sum, in exchange for assuming its outstanding liabilities. However, Subowo denied these claims, stating that DailyCo, as a financially stable and profitable company, is cautious about taking on distressed assets that could negatively impact its balance sheet.

Dunkin' Indonesia, operated by PT Dunkindo Lestari, has been present in the market since 1985 and is a popular name with over 200 outlets across Indonesia. Once a dominant player, it now competes with other franchised bakery brands, including J.Co and Krispy Kreme Doughnuts, as well as local bakery chains.

Meanwhile, PT Inti Prima Rasa has been known for its bakery and pastry manufacturing capabilities since 1996, particularly in the premium frozen and ready-to-bake segments-assets that could complement DailyCo's scaling B2B infrastructure and supply-chain business. It supplies pastries to Starbucks Indonesia and IKEA and also operates a café bakery brand, Delico.

Strategic M&As

The potential acquisitions will be partly financed by a new funding round that Daily Co is preparing to raise. Subowo stated the company aims to raise at least as much as in the previous funding round, a $24-million Series B round led by Northstar Group and Vertex Growth in June 2022.

While equity remains the preferred instrument, Subowo noted the company is open to bringing in strategic investors-particularly conglomerates or multinational F&B groups with a strong Southeast Asia footprint.

"We don't just want capital-we want partnership. The right strategic investor could help us enter

regional markets where our food resonates but purchasing power is higher" he said.

He added that the company aims to maintain operational control, preferring super minority investors who bring added value. "It's not just about the money-it's about shared vision and access," he said.

DailyCo acts as a venture builder, typically taking majority stakes (above 51%) in acquired companies. The size of the acquisition target ranges from tens of thousands to millions of dollars in valuation, depending on synergy and output capacity.

He continued, "As a venture builder, our strategy is built on three main pillars: bakery, restaurant platforms, and B2B food services-supported by a strong foundation of co-collaboration." Adding "co" from the word collaboration, the company rebranded from Dailybox Group to DailyCo last year.

From cloud kitchen to B2B powerhouse

Founded in 2018 as Dailybox, DailyCo initially thrived in the cloud kitchen era. While many regional players exited the cloud kitchen model due to poor unit economics, DailyCo saw the writing on the wall early.

Subowo explained that the over-reliance on promotions by food delivery platforms was unsustainable. "Once cashback stopped, demand fell off a cliff," he said. "We had to future-proof the business."

In 2022, the company transitioned into a hybrid model-starting with the acquisition of Breadlife and Lumiere-and began building out its production and offline footprint.

Subowo cited a key moment during the Covid19 Omicron surge when BreadLife's government-linked outlets remained open, illustrating how institutional food demand is more resilient than consumer-driven sales. That insight laid the groundwork for DailyCo's current B2B expansion strategy-though lower margin, it offered much-needed stability and predictability.

While B2B contracts offer volume and long-term cash flow, DailyCo is carefully balancing them with higher-margin B2C segments. Its multi-brand approach enables a layered pricing and product strategy, targeting everyone from aspiring middle-class consumers to premium diners.

"Our B2C margins average around 25%, and our B2B margins are around 10-12%. But because of the volume and cost leverage from B2B, we can consolidate at 17% EBITDA margins at the group level," Subowo shared.

He also noted that consumer behaviour has shifted in recent quarters, particularly after Indonesia's 2024 elections. With inflation and spending tightening, more employees rely on workplace meals provided by employers. "Food remains a necessity, and B2B allows us to serve that base sustainably," he said.

Notably, DailyCo reported that it is no longer burning cash at the group level and is comfortably covering head office expenses from operating profit. That financial position allows the company to grow strategically without rushing into unfavourable investor deals.

Competitive landscape

DailyCo competes with a mix of VC-backed F&B startups such as Yay! Group, Hangry, YummyCorp, UENA, and Legit Group, as well as established players like Ismaya Group, The Union Group, and Boga Group. Despite differences in scale and origin, many of these companies share a similar playbook: serving the B2C segment and operating multiple brands to cater to a wide range of consumer tastes and economic segments.

These players typically adopt a hybrid strategy-leveraging food delivery platforms like Gojek and Grab, developing their own native apps, and establishing a strong presence in high-traffic public locations to maximise both digital and physical reach.

According to a 2023 report by Redseer, chain operators still account for only 9% of Indonesia's total food services market, with independent, unorganised vendors dominating the sector.

The same report highlights that offline dining formats continue to drive 80% of total F&B sales, emphasising the continued importance of physical outlets and reliable on-site operations — core pillars that are now central to DailyCo's growth strategy.

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