Initially started as offline store in 2012 operating in the Indonesian city of Medan by Robin Boe and Jhoni Kusno, Otten expanded its business into the e-commerce space to expand its customer reach across Indonesia.
The Indonesian coffee industry is particularly lucrative sector, with an annual production ranging from 600,000 – 720,000 tonnes.
According to the Global Business Guide Indonesia, the coffee industry presents opportunities for investment in both the upstream and downstream segments of the industry vertical, needing growth capital and being largely export-driven at this point. After Brazil and Vietnam, Indonesia is the third largest coffee producer and exporter globally.
It offers highly specialised coffee-related products, ranging from coffee beans to tools and equipment needed for coffee production. Capital from this Series A round will go towards improving Otten Coffee’s product selection expand product offerings. It is expected to significantly boost its position in the Indonesian coffee market, given that the Association of Indonesian Coffee Exporters and Industries (AICE) forecasts a compounded annual growth rate of 10.4 per cent in domestic consumption.
Boe stated: “People are willing to explore more on coffee making techniques, which is not easy because it requires knowledge on a variety of tools and equipment just to deliver one great cup of coffee. This energises us to educate Indonesians about this industry. We want them to know more on various types of coffee beans and master diverse brewing methods. We see the potential, as our people had 0.96kg/year per capita coffee consumption in 2012.”
Noticing the shift of coffee consumption in the market as the Indonesian middle class grows, Boe and Kusno realised that there was an increasing trend of coffee consumers wishing to gain deeper knowledge about coffee production processes and refining. This aligns with the increasing domestic consumption that Indonesia has experienced since 2008.
Wilson Cuaca, the managing partner of East Ventures, commented “Indonesia has been long known as one of the biggest coffee exporter in the world contributing 8.8 per cent of total coffee production in the world. With the recent third wave coffee movement; the artisan and exotic coffee beans, couple with the arts of coffee brewing have been highly recognized. Otten is well positioned to capture this opportunity, being headquarter in Indonesia and using online platform to distribute their coffee beans and equipment. Otten brings good quality coffee to your door.”