Indonesia-focused venture capital firm Alpha JWC Ventures has invested $8 million in the seed funding round of local coffee chain Kopi Kenangan, founded in 2017 by entrepreneurs Edward Tirtanata and James Prananto, a company executive told DEALSTREETASIA.
In the last one year, Kopi Kenangan has opened 16 outlets in the Greater Jakarta area, and it targets to touch 30 by December. It is targeting to become the fastest-growing non-franchise coffee chain in Indonesia with more than 100 stores in the near future. It claims to sell up to 175,000 cups per month.
The ‘grab and go’ coffee chain is built on a non-franchise model with the objective of maintaining operational standards and quality.
“We place the highest emphasis on quality and taste…but with competitive pricing that matches the needs of rising urban middle class,” says co-founder and CEO Edward Tirtanata.
The startup will deploy proceeds from the round on store expansion, R&D and mobile app development.
Kopi Kenangan, which has over 20 items on its menu, is popular for its trademark iced-coffee, ‘Es Kopi Kenangan Mantan’. “We do not want to be a one-hit wonder. With continuous R&D, we will bring the best menu variations, such as tea-based drinks, that can cater to many taste preferences and prove that Kopi Kenangan is more than just coffee,” co-founder and COO James Prananto said.
Kopi Kenangan operates its stores across a variety of locations from office basements, mall lower grounds, gardens to the suburbs. The mobile app, which is on the drawing board, will have a store locator, pre-order facility, payment support, and many other features.
“We believe that technology can help businesses in Indonesia to scale in so many sectors. One sector that we are focusing on is the sustainable consumer sector. Kopi Kenangan is a good example on how technology could potentially help the rapidly growing coffee chain to scale even faster and create a better experience for customers,” says Alpha JWC Ventures co-founder and managing partner Jefrey Joe.
Alpha JWC Ventures, which bets on sectors like fintech, consumer, data analytics, logistics tech, recently launched its second fund of $100 million. Alpha JWC recently added two Indonesia-based companies into its portfolio list by backing the seed round of neuroscience and sensory analytics company Neurosensum and smart capsule hotel startup Bobobox.