Indonesian coffee chain, Kopi Kenangan, has secured US$96 million in its Series C funding, becoming the country’s latest retailer to reach unicorn status.
Led by Tybourne Capital Management, the funding has brought Kopi Kenangan’s value to more than US$10 billion. The round was also joined by existing investors, including Horizons Ventures, Kunlun, and B Capital, and new investor Falcon Edge Capital.
The company said the funds raised will be used for the expansion of its new brands, Cerita Roti, Chigo and Kenangan Manis across Indonesia. It will also continue to build the Kopi Kenangan network and broaden its footprint internationally, especially in ASEAN markets.
“This fundraising positions us as the first New Retail F&B Unicorn from Southeast Asia,” said Edward Tirtanata, co-founder and CEO of Kopi Kenangan. “The continuing support of our investors, as well as the new backers in this funding round, is a testament to our continued focus on increasing store productivity and using technology to create the best user experience for our customers.
“Our mission is to be the most-loved consumer brand in Southeast Asia and, as part of our five-year vision, we remain committed to rapidly expanding our footprint to thousands of stores across Southeast Asia and broadening our offerings,” he added.
The round follows Kopi Kenangan’s Series B funding in 2020, where it successfully raised US$109 million, led by Sequoia Capital. According to the company, its year-on-year sales have more than doubled in the past 12 months and maintained profitability due to its robust store-level margins and attractive store-level payback period.
Founded in 2017 by Tirtanata, James Prananto, and Cynthia Chaerunnisa, the coffee chain targets a gap between high-priced international coffee chains and the instant coffee sold in street stalls. Kopi Kenangan currently operates more than 600 stores across 45 cities.
“In a few short years, Edward and James, together with the highly experienced management team, have grown the business significantly and helped it navigate the challenges of the ongoing Covid-19 crisis,” said Bosun Hau, MD of Tybourne Capital Management.
“The strength of the Kopi Kenangan team, coupled with their entrepreneurial spirit, deep knowledge of the F&B industry and their ability to use technology to retain and engage with customers and improve efficiency and sales, bodes well for the future of this new Indonesian unicorn.”
