Kopi Kenangan snags US$109M in Series B funding led by Sequoia Capital
Indonesia-based online beverage retail Kopi Kenangan announced that it has raised US$109 million of Series B funding led by existing investor Sequoia Capital. It also welcomes new investors including B Capital, Horizons Ventures, Verlinvest, Kunlun, and Sofina, 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.
Kopi Kenangan was founded in 2017 and has since 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. Kopi Kenangan’s approach of offering recipes that cater to local tastes and its ‘new retail’ model combining the online and the offline world was its main selling point, allowing customers to order its locally sourced coffee blends ingredients through an app.
“The hospitality industry is facing the biggest existential crisis of our generation,” Edward Tirtanata, Co-founder and CEO of Kopi Kenangan, commented on the COVID-19 situation, “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.”
In addition to the latest fundraising, Kopi Kenangan also has added to its portfolio a commitment to help local F&B entrepreneurs with technology, investment, and mentorship through the food accelerator program Digitarasa. Kopi Kenangan has set up a new training academy for baristas and workers in the F&B sector to re-skill themselves for a changing landscape.
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.
The new funding follows Kopi Kenangan’s US$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 Arrive, a Roc Nation company, Serena Ventures, world-renowned basketball player Caris LeVert, and Sweetgreen CEO & Co-Founder Jonathan Neman, amongst others.
Going forward, the company plans to offer a wide range of food and beverage products from local merchants as well as its cloud kitchens. It also plans to expand across neighbouring countries post-pandemic with stores in Thailand, Philippines, and Malaysia.