Southeast Asia’s coffee operators are returning to the dealmaking circuit, as corrected valuations reshape fundraising, M&A, and IPO plans across the region. From Vietnam to Indonesia, café businesses are seeing renewed investor interest, but with a sharper eye on profitability, scalability, and payback, industry experts told Mergermarket.

“Growth is back, but valuations are not,” said a Southeast Asia-based investment banker.

Buyers are now focused on store-level margin, cash flow visibility, and return timelines when assessing deals, he said.

Deals are now typically priced at 8x-10x EBITDA or under 2x revenue, said a Vietnam-based private equity investor. “Some sellers still want 2021-style (peak-era) valuations, but reality is catching up.”

Setting the scene

In February, Vietnam-based Golden Gate Group acquired the local chain The Coffee House, underscoring renewed M&A interest in Vietnam. The deal value was reportedly VND 270bn (USD 10.5m), representing a steep discount to the targets’ 2021 valuation due to contracted operations. The Coffee House competes with Highlands Coffee, owned by the Philippines’ foodservice giant Jollibee Group, which recently downplayed IPO speculation.

Investor caution has led to greater realism in the sector, said Billy Kurniawan, CEO at Janji Jiwa, in an interview with Mergermarket. 

“The market has corrected itself. The valuations now reflect whether the growth potential is feasible and doable, not just selling dreams,” he said. The Jakarta-based grab to go coffee chain stays grounded and focused on sustainable execution for growth, he added.

Beyond M&A, Southeast Asia has also seen a wave of IPO activity. Indonesia’s Fore Coffee and Malaysian Oriental Kopi successfully debuted on the IDX and ACE Market of Bursa Malaysia this year, respectively, raising capital to fund their expansion at home and in Singapore.

Fore Coffee trades at an estimated 30x EV/EBITDA and 5.4x EV/sales. But its valuation is viewed as an outlier, according to an Indonesia-based M&A advisor. Most café transactions today are priced around 8-10x EBITDA, he said.

The boom in coffee shops across Southeast Asia is driven by lifestyle shifts, economic growth, and evolving consumer preferences, particularly among millennials and Gen Z, according to a spokesperson at Jollibee, which has actively expanded its footprint through multiple acquisitions.

Comparable cafe brands trade around 13x EBITDA across the region, said the spokesperson.

“The coffee category continues to show strong growth potential with valuations across the segment continuing to be compelling,” he continued, noting its latest acquisition of South Korea’s Compose Coffee in 2024 was a “value-accretive” investment. The deal was valued at a favorable multiple of about 8x EV/EBITDA, as disclosed at the time.

Strategic M&A, pipeline

Deal flow is expected to increase in the region, backed by a strong pipeline and growing strategic interest.

In Thailand, oil retailers are steering cafe expansion as part of their non-oil strategies.

PTT Oil and Retail, the operator of Café Amazon, said in its 1Q25 SET Opportunity Day presentation that part of its THB 18bn (USD 490m) capex will go toward lifestyle investments, including M&A. Around THB 7.02bn (USD 191m) is allocated to outlet expansion, renovation, and acquisitions. An additional THB 2.7bn (USD 74m) is set aside for international growth, with a focus on Cambodia.

PTG Energy, which operates PunThai Coffee, also disclosed that M&A is part of its 2025 capex plans, identifying PunThai as a key driver in its non-oil portfolio. The company aims to expand to 5,000 outlets by 2028.

Meanwhile, Indonesia’s Kopi Kenangan is being marketed by Peak XV Partners for a potential exit, as  reported by Mergermarket on 28 July. Its smaller peer, Tanamera Coffee, the specialty coffee chain growing across Southeast Asia, is also exploring strategic funding for growth, co-founder Ian Criddle told this news service earlier this month.

Other potential targets in the sector include Bo’s Coffee, a Philippine-based chain owned by local PE firm Navegar, and MAP Boga Adiperkasa, the Indonesia-listed Starbucks operator, backed by General Atlantic. The private equity owner suspended the sale of MAP Boga amid macro uncertainties, Financial Times reported in December 2024.