Kopi Kenangan, a startup that wants to serve quality, fresh coffee which is affordable to Indonesian consumers, has raised $20 million since it begins to consider international expansion in Southeast Asia. With the new investment, the company seems to accelerate its growth by launching 150 outlets by the end of 2019 and expanding to 1,000 stores across the country by 2021. Presently, Kopi Kenangan has 80 stores in eight cities and promises to serve one million cups of coffee a month.
Started in 2017 by Edward Tirtanata and James Prananto, the business intends to bridge the gap between cheap road vendor coffee and drinks priced at the high end of this spectrum from global chains like Starbucks. This delta is a significant reason Indonesia, that’s the world’s fourth-largest java exporter, has Southeast Asia’s lowest coffee consumption per person, Tirtanata said.
To capitalize on this, the company combines the ease of online shopping with the feel of an offline experience through its app, which started in April of this past year. Through the program, customers can order their coffee for pick up or have their coffee delivered by food tech players such as GrabFood and Go-Food.
Kopi Kenangan has an impressive retail footprint, such as 80 stores across eight cities. The company uses on-demand services like Go-Jek (GoFood) and Grab (GrabFood) which account for one-third of orders, according to Tirtanata, as opposed to conducting its outside fleet as some rivals.
Late last year, the business raised US$8 million in seed financing in Indonesia-focused venture capital firm Alpha JWC Ventures.
Other homegrown coffee manufacturers include Toko Kopi Tuku and Fore Coffee, which recently increased about US$10 million in a series A round.