Following the Company’s Rapid Growth, The Sequoia Capital India Led Series B Will Fuel International Expansion, Further Enhance Staff Training and Benefits, Accelerate Cloud Kitchen and Technology Innovation
Jakarta, May 12, 2020 — Southeast Asia’s fastest-growing beverage retail Kopi Kenangan announced that it has raised US $109 million of Series B funding led by the company’s existing investor, Sequoia Capital India. New investors, including B Capital, Horizons Ventures, Verlinvest, Kunlun, and Sofina also invested in the round, as well as the company’s first institutional investor Alpha JWC Ventures. The company plans on using this round of funding to strengthen its operations in Indonesia, launch new products, invest in technology to better serve its customers, and protect employees amid the COVID-19 pandemic.
Founded in 2017, Kopi Kenangan has filled a market gap between the high-priced coffee served at international coffee chains, which is priced out of reach of most Indonesians, and the instant coffee sold in the country’s many street stalls. Their appeal lies in the wide range of recipes that cater to local tastes and their ‘new retail’ model that combines the online and offline world. Customers have the convenience of ordering through an app and having it delivered to their doorstep or visiting one of their many kiosks across the country to sample coffee blends made with locally sourced ingredients.
Kopi Kenangan has since been evolving the business from a coffee-centric grab-and-go chain to include more variety of Southeast Asian favorites like Boba which has recently become a top-seller in its stores alongside its iconic Es Kopi Kenangan Mantan. Going forward, the company plans to offer a wide range of food and beverage products from local merchants as well as its cloud kitchens.
Kopi Kenangan was one of the first beverage retails to respond to the COVID-19 pandemic in Indonesia by providing face masks, hand sanitizers, and protective shields to customers and employees in stores, as well as implementing temperature checks and providing a health card with every delivery. They are also the first Indonesian beverage retail to install UV sterilizers in their stores. Kopi Kenangan has also been working with various government and health organizations to provide protective medical gear, donations, and free coffee for frontline healthcare workers in over 121 hospitals across the country as ways to show gratitude for their service in this trying time.
“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.”
Kopi Kenangan commits to helping local F&B entrepreneurs with technology, investment, and mentorship through the food accelerator program Digitarasa. Kopi Kenangan has also set up a new training academy for baristas and workers in the F&B sector to re-skill themselves for a changing landscape. Kopi Kenangan currently employs 3,000 people and hopes to create more jobs across cities and towns as it opens new stores. It expects to reach 500 stores by the end of 2020.
“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. We are looking forward to bringing the same delightful experience and tasty products in more categories and formats as the business expands into newer markets like Thailand, Philippines, and Malaysia post COVID-19”, said Rohit Agarwal, Vice President, Sequoia Capital (India) Singapore.
To help accelerate Kopi Kenangan’s growth, Eduardo Saverin, Co-Founder of social media company Facebook, will be joining the Board of Directors, bringing in his versatile and transformational leadership to the team. “I am looking forward to working closely with Kopi Kenangan and build a global brand celebrating Indonesian and Southeast Asian flavors,” said Eduardo.
The new funding follows Kopi Kenangan’s US$ 20 million Series A round in June 2019 led by Sequoia Capital India 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 Arrive, a Roc Nation company, Serena Ventures, world-renowned basketball player Caris LeVert, and Sweetgreen CEO & Co-Founder Jonathan Neman, amongst others.
Currently, Kopi Kenangan operates 324 stores across Indonesia and reaches over a million customers through its mobile app – which has recently been one of the top downloaded and highest rated application in the F&B category in Indonesia. Following its rapid national growth, Kopi Kenangan plans to expand across neighboring countries with stores in Thailand, Philippines, and Malaysia expected to open post the pandemic.