Indonesian F&B Startup Kopi Kenangan Raises US$109M Series B
Investment to be directed toward Kopi Kenangan’s product line and regional expansion
By Monika Ghosh
Indonesian beverage retail startup Kopi Kenangan has raised US$109 million in its Series B funding round led by existing investor Sequoia Capital, according to a statement issued by Kopi Kenangan on Tuesday.
New investors, including B Capital, Horizons Ventures, Verlinvest, Kunlun, and Sofina also participated in the round, along with the startup’s first institutional investor Alpha JWC Ventures.
The startup will use the latest funds to strengthen its operations in Indonesia, launch new products, invest in technology, and protect employees amid the COVID-19 pandemic, according to the statement.
The new funding follows Kopi Kenangan’s $20 million Series A round in June 2019 led by Sequoia Capital and its seed round in 2018 led by local investor Alpha JWC.
In December 2019, Kopi Kenangan also announced an expansion of its Series A round with additional investment from an all-star lineup: Arrive, a Roc Nation company; Serena Ventures, the investing firm of world number one tennis player Serena Williams; world-renowned basketball player Caris LeVert; and Sweetgreen CEO & Co-Founder Jonathan Neman, among others.
To help accelerate Kopi Kenangan’s growth, Eduardo Saverin, Co-Founder of Facebook, will be joining the Board of Directors, according to the statement.
“I am looking forward to working closely with Kopi Kenangan and build a global brand celebrating Indonesian and Southeast Asian flavors,” said Saverin.
Founded in 2017, Kopi Kenangan claims to have filled a market gap between high-priced coffee served at international coffee chains which are unaffordable to most Indonesians, and the instant coffee sold in the country’s many street stalls.
According to the company, Kopi Kenangan’s appeal lies in its range of recipes that are customized for local tastes and its ‘new retail’ model that merges the online and offline worlds. Customers can order through an app and have it delivered to their doorstep, or visit one of the startup’s kiosks across Indonesia to sample coffee blends made with locally sourced ingredients.
Kopi Kenangan has evolved from a coffee-centric grab-and-go chain to include a greater variety of Southeast Asian beverage trends such as boba (tapioca bubbles), a recent top-seller in its stores. The startup plans to offer food and beverage products from local merchants as well as its cloud kitchens in the future.
Currently, Kopi Kenangan operates 324 stores across Indonesia, employs 3,000 people, reaches over a million customers through its mobile app – which has recently been one of the top downloaded and highest rated applications in the F&B category in Indonesia, and also claims to sell more than 3 million beverages per month.
Following its rapid national growth, Kopi Kenangan plans to expand across neighboring countries, with stores in Thailand, Malaysia, and the Philippines expected to open after the pandemic abates. The startup aims to reach 500 stores by the end of 2020.
“The hospitality industry is facing the biggest existential crisis of our generation,” said Edward Tirtanata, Co-founder and CEO of Kopi Kenangan. “It’s hard to tell when the sector will return to normal but when it does, it will look very different.”
“As a growing startup, we are adapting quickly to the challenge through contactless commerce and uncompromising hygiene standards throughout our stores. The well-being of our employees is a big priority and we are investing in their safety, along with enhanced health benefits and additional training to help them cope with this massive change.”
According to the statement, Kopi Kenangan was one of the first beverage retails in Indonesia to provide face masks, hand sanitizers, and protective shields to customers and employees in stores, has implemented mandatory temperature checks, and provides a health card with every delivery.
The company also says it was the first Indonesian beverage retailer to install UV sterilizers in stores. According to the press report, Kopi Kenangan has been working with various government institutions and health organizations to provide protective medical gear, donations, and free coffee for frontline healthcare workers in over 121 hospitals across the country.
Kopi Kenangan will help local F&B entrepreneurs with technology, investment, and mentorship through the food accelerator program Digitarasa, the statement claims. The startup has also set up a new training academy for baristas and F&B workers to re-skill them for a changing landscape.
“F&B is one of the largest consumer opportunities in Southeast Asia and Kopi Kenangan has built a very authentic and compelling identity among millions of Indonesians,” said Rohit Agarwal, Vice President, Sequoia Capital (India) Singapore.
Header Image Courtesy of Kopi Kenangan