Investor interest in tech-enabled coffee chains in Indonesia continues unabated. The latest to enter the fray is Koppi, which has snagged pre-seed funding from an angel investor and is in talks with few venture capital investors to raise a seed round.
Financial details of the round could not be ascertained.
Koppi, which recently launched its first store in the heart of Jakarta, is betting big on its in-house coffee app. The startup, which does not have an e-wallet yet, claims that its products are priced competitively. It is now seeking partnerships to expand at a faster pace.
Koppi CEO Tony Arifin and chief strategist Michelle Teh told DEALSTREETASIA, “We are focused on good quality coffee and good user tech experience. We plan to grow to 49 stores in 2019.”
Some of the investors who have made early bets on Indonesia’s tech-enabled coffee chain business include East Ventures, Agaeti, Alpha JWC and Convergence Ventures, to name a few. Indonesia’s domestic new consumption theme riding on suitable demographics, smartphone penetration and young population seem to drive investor interest in the new-concept coffee retail space.
Also, the success of China’s Luckin Coffee, which was valued at $2.2 billion after it attracted funding from Singapore’s GIC and China International Capital Corp, has sparked a lot of interest among both entrepreneurs and investors who are seeking to emulate the model in Southeast Asia’s biggest market. Luckin Coffee operates outlets that are cashless and designed for fast pick-up as well as delivery.
In recent deals in the coffee chain space, East Ventures-backed Fore Coffee secured a Series A funding round of $8.5 million from a group of venture capital and angel investors. The VCs that participated in the round include East Ventures, SMDV, Pavilion Capital, Agaeti Venture Capital and Insignia Ventures Partners, the startup revealed in an announcement.
Apart from Fore, in the last six months, Indonesia has seen quite a few venture capital investments in coffee shops including Kopi Kenangan, which secured $8 million from Alpha JWC.