Indonesian coffee chain Kopi Kenangan bags US$109m funding, to boost ops and products

Indonesian coffee chain Kopi Kenangan has raised US$109 million in Series B 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.

Kopi Kenangan's spokesperson declined to comment on the percentage of the fresh funds which will be set aside for marketing purposes. "For this year, our marketing plans are to build brand trust, expansion to new market and customer/user research," the spokesperson added.

The latest funding is led by the company’s existing investor, Sequoia Capital. 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 currently operates 324 stores across Indonesia and reaches over a million customers through its mobile app. Following its growth in Indonesia, Kopi Kenangan plans to expand into Thailand, Philippines, and Malaysia post pandemic. It currently employs 3,000 people and hopes to create more jobs across cities and towns as it opens new stores. Kopi Kenangan also expects to reach 500 stores by the end of 2020.

Co-founder and CEO Edward Tirtanata said it is 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," he added.

Earlier this year, American tennis player Serena Williams and American rapper Jay-Z came on board as investors of Kopi Kenangan and the company also raised US$8 million in seed funding and another US$20 million in Series A funding. 

Founded in 2017, Kopi Kenangan has since evolved its business from a coffee-centric grab-and-go chain to include more variety of Southeast Asian favorites such as boba. 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 also provided 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.