Jakarta. One of the fastest-growing coffee chains in Indonesia, Kopi Kenangan, has secured $109 million in its Series B funding round led by current investor Sequoia Capital and joined by several new ones.
Among the new investors are Horizons Ventures, Verlinvest, Kunlun, Sofina and Kopi Kenangan's initial investor, Alpha JWC, who rejoined the funding.
"The food and beverage industry is one of the biggest consumer opportunities in Southeast Asia, and Kopi Kenangan has built an authentic identity in Indonesia. We could not wait to bring it to bigger categories, formats and market," Sequoia Capital (India) Singapore Vice President Rohit Agarwal said.
With the new funding, Kopi Kenangan aimed to strengthen its business and operation in Indonesia by launching new products and investing in technology to enhance services.
The coffee chain is expected to add more than 100 new stores by the end of the year.
Currently, Kopi Kenangan has 324 stores and 3,000 workers. By the end of 2020, it estimates to have up to 500 stores, creating new job opportunities in cities across Indonesia.
Kopi Kenangan has developed its grab-and-go retail business model by adding more variants to its menu, including the much-hyped boba, to complement their famous iced coffee.
The company now also plans to add other items from local producers to its menu, as well as planning to develop cloud kitchens.
Kopi Kenangan also remains committed to helping local F&B entrepreneurs to develop their business with technology, investment and mentoring through its accelerator program Digitarasa.
Its new training academy for barista and F&B workers is also expected to help them to thrive in the ever-changing industry landscape.
The company also announced the appointment of Facebook co-founder Eduardo Saverin to their board of directors, bringing his transformational leadership to the table.
"I'm looking forward to cooperating with Kopi Kenangan to build a global brand that celebrates Indonesia's and Southeast Asia's taste," Saverin said.
During the Covid-19 pandemic, Kopi Kenangan provides facemasks, hand sanitizer and protective equipment for both employees and customers at its stores.
It also uses UV sterilizers to clean equipment and tools used in the stores.
Kopi Kenangan's co-founder and chief executive, Edward Tirtanata, said it was only right for the company to adapt amid the crisis and predicted that business models would largely change once the pandemic is over.
"As a growing startup, we are adapting quickly with contactless sales and have increased hygiene standards in all our stores. It's difficult to predict when businesses in Indonesia would return to normal. And once everything gets better, the industry would be very different," Edward said.