COFE raises $15m in Series B funding round

Online coffee marketplace COFE has successfully completed its Series B funding round, raising $15m in investment capital.

Founded by Ali Al-Ebrahim in November 2018, COFE App currently operates in Kuwait, Saudi Arabia, UAE and Egypt, with international expansion in the pipeline.

The platform was listed by CITC KSA as one of the top 10 most downloaded applications in 2020, and was also the official main partner of Riyadh Season 2022.

The lead investor in this round is Waed Ventures, the $500m Saudi-focused VC Capital Fund wholly owned by Aramco.

eWTP Arabia Capital, which has received significant funding support from the Public Investment Fund (PIF) and the Electronic World Trading Platform (eWTP) Capital initiated by Alibaba Group in the Middle East region, is another key investor.

Al Imtiaz Investment Group and KISP Ventures (KFH Capital), and Rasameel Investment Company, a Kuwait-based wealth management fund also participated in the round.

COFE: Set for growth

Al-Ebrahim said, “COFE’s story has been one of resilience. We have had some great opportunities, but not without challenges that have needed innovative maneuvering. However, we have persevered in our ambition to create a fertile breeding ground for the growth of the entire coffee ecosystem, especially in the region.

“At COFE, we have always sought to grow all our partners, investors, and the industry with us. None of this would have been possible without the hard work and trust of everyone that has continued to take this journey with us, especially our users.”

Since its inception in 2018, the platform has become an integral player in the $44bn MENA coffee market.

Additionally, the global coffee market is also forecasted to expand at a CAGR of 7.5 per cent between 2022-2027.

The funds raised by COFE in its Series B round will focus on the brand’s e-commerce offering.

Having entered the Saudi market in 2020, COFE has seen widespread acceptance from users in the kingdom and was listed as one of the ‘Top 10 Most Downloaded Food Delivery and Restaurant Apps (2021)’ in the kingdom in a survey conducted by the Communication & Information Technology Commission (CITC) of Saudi Arabia.

Appealing to investors

Most recently, the brand has also announced its partnership with the Saudi Coffee Company (SCC), established by the PIF company with a mandate to develop the Saudi coffee industry, investing SAR1.2bn ($319m) in the national coffee sector over the next 10 years.

This focus on the coffee industry in the kingdom has attracted the interest of Saudi-based investors.

Read: From bean to brew: How Saudi Coffee Company is powering the kingdom’s coffee industry

Saudi Coffee Company is proud to announce an MOU with COFE App, our main online partner in promoting Saudi coffee to wider national & global markets. Bringing the #SaudiCoffee industry into the digital future, this will also enable local producers to connect with end users. pic.twitter.com/16jILmsQ7I

— الشركة السعودية للقهوة (@SaudiCoffeeCo) December 20, 2022

Fahad Alidi, managing director at Wa’ed Ventures said: “Our mission is to advance sustainable innovation within emerging tech segments in the kingdom.

“The founding team at COFE app, supported by its cutting-edge platform, will disrupt a multi-billion-dollar market fueled by a nationwide initiative supporting its growth for years to come.

“We look forward to backing COFE’s growth as it continues to lead the digitalisation of farm-to-cup consumerism across the region.

eWTP Founder, Jerry Li, said: “We partner with like-minded entrepreneurs and support the growth of promising businesses in the GCC region. We believe our investment, combined with strategic assistance, will provide COFE with resources to scale and grow. Our investment is a testament to our commitment to promote innovation in the region.

“We are excited about COFE’s vision in digitising the coffee industry, which would be a multi-billion market with enormous untapped potentials.”

Al-Imtiaz Investment Group, a leading investment group based in Kuwait and listed on the Boursa Kuwait (formerly the Kuwait Stock Exchange), is COFE’s largest investor by contribution.

Having invested $10m in the previous round and committed to further support the company, Al-Imtiaz invested $1m in this Series B round, taking its total investment in COFE to $11m.

Al Imtiaz Investment group executive VP, Saad Al-Bader said, “We believe that COFE is ready to scale internationally into new markets and to further strengthen its market position and service offerings.”