Indonesian coffee chain Kopi Kenangan becomes latest South-east Asian unicorn

Kopi Kenangan has delivered top-line growth over the last 12 months, with sales more than doubling year on year. PHOTO: KOPI KENANGAN / FACEBOOK

SINGAPORE (THE BUSINESS TIMES) - Kopi Kenangan has raised US$96 million (S$130 million) in its latest Series C round at a valuation above US$1 billion, propelling the Indonesian coffee chain to unicorn status.

The funding round was led by Tybourne Capital Management and saw participation from new investor Falcon Edge Capital, as well as existing investors including Horizons Ventures, Kunlun and B Capital.

According to Kopi Kenangan, the company has delivered top-line growth over the last 12 months, with sales more than doubling year on year. Robust store-level margins and attractive store-level payback period have helped to maintain profitability, according to the coffee chain. Having served 40 million cups of coffee in the last 12 months, Kopi Kenangan expects to serve 5.5 million cups per month in Q1 2022.

The valuation jump for Kopi Kenangan is significant, as its last valuation at Series B was at US$405 million, according to data from VentureCap Insights. The coffee chain has raised about US$137 million prior to the latest round of funding, with the most recent being US$109 million raised for Series B back in May 2020.

The fresh funds will be used to accelerate the expansion of Kopi Kenangan's new brands across Indonesia, as well as broaden its footprint internationally. The company has expanded its product offerings to include bread brand Cerita Roti, "chicken on the go" brand Chigo, cookies brand Kenangan Manis, as well as bubble tea brand Sultan Boba.

"Our mission is to be the most-loved consumer brand in South-east Asia and, as part of our five-year vision, we remain committed to rapidly expanding our footprint to thousands of stores across South-east Asia and broadening our offerings," said Mr Edward Tirtanata, co-founder and chief executive officer of Kopi Kenangan.

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