Heaptalk, Jakarta — Indonesia’s unicorn startup, Kopi Kenangan, announced an expansion to the Philippines and India. The two markets will operate under the Kenangan Coffee brand.
According to the company, the Philippines will be Kenangan Coffee’s third Southeast Asian market. Unicorn Kopi Kenangan perceived that the country’s growing demand for fresh-brewed coffee, particularly iced coffee, among the country’s rising generation, aligns with Kopi Kenangan’s core customer base. Moreover, the coffee market in the Philippines generated a Compound Annual Growth Rate (CAGR) of over 20% in 2021 – 2023, encouraging this business expansion.
Meanwhile, India represents the brand’s first venture outside of Southeast Asia. With coffee consumption rising, particularly among Gen Z and Millennials, India’s market holds great potential. The country’s cafe industry grew by 29% in 2020-2022 and is expected to grow a further 19%- 21% over the next five years.
“On our 7th anniversary, we celebrate the incredible journey from a small coffee shop in Indonesia to the global stage. Our expansions into Malaysia and Singapore testify to our commitment to bringing quality coffee to more people worldwide. We aim to continue our growth by opening 500 international Kenangan Coffee outlets across various countries.” Edward, the co-founder of Kopi Kenangan, said.
How Kopi Kenangan surges its business in 2024
This unicorn recorded remarkable financial performance in the first half of 2024, surpassing its previous year’s achievement. In the second quarter of 2024, Kopi Kenangan’s sales noted impressive growth of up to 27% compared to the second quarter of 2023.
Besides, Kopi Kenangan’s EBITDA also doubled compared to the previous year’s second quarter. In Q2 2024, the company reported an EBITDA margin of 23% and a net profit margin of 5%, showcasing its operational efficiency and profitability.
In addition to its outstanding financial performance, this food & beverage (F&B) startup continues to lead in product innovation, including:
- Matcha Series, selling over 940,000 cups in two months.
- O.G Aren Series, achieving equally impressive numbers with over 890,000 cups within a similar period.
Following its business expansion in Malaysia two years ago, Kenangan Coffee’s first store at Suria KLCC sold over 1,440 coffee cups on opening day. As of June 2024, Kenangan Coffee Malaysia boasts over 48 outlets across five states, and sales surged by over 360% in Q2 2024. New store openings and Strong Same-Store Sales Growth (SSSG) have fueled this growth.
Kenangan Coffee in Singapore has also witnessed rapid growth since its 2023 debut. On its opening day, the brand sold over 1,500 cups, and less than a year later, it reported an EBITDA margin growth of 17% in Q2 2024. Sales in Singapore also saw a 43% increase compared to Q1 2024, with the current seven outlets expected to grow to 8 by the end of the year.
General Manager of Kenangan Coffee Malaysia and Singapore, Jordan Lung, delivered, “In just two years since our first international expansion, Kenangan Coffee has proven to be a key player in Southeast Asia. Our significant growth in Malaysia and Singapore reflects our brand strength and positions us for continued success,”
