Heaptalk, Jakarta — Indonesia-based Kenangan Coffee has officially entered the Indian market by rolling out its first outlet at Pacific Mall in New Delhi. The company is reportedly allocated up to US$4.6 million, or around Rp77.2 million fund, toward its India rollout, which includes setting up a local coffee procurement initiative.
The company planned to establish at least 10 locations across India by the end of 2025, with a long-term target of operating 50 outlets. Around 70% will follow a complete cafe concept, while 30% will adopt a compact, takeaway-focused design. Kopi Kenangan observed that this market’s evolving coffee scene is a prime opportunity to introduce Indonesian-inspired offerings to a younger, increasingly coffee-savvy demographic.
“India’s youthful consumer base and growing interest in diverse coffee styles make it a strategic market for our brand. We expect the ROI in India in the next 20-24 months. In Indonesia, our payback period is 18 months. In Singapore, it is only 12 months, and in Malaysia, it is around 24 months,” said Edward Tirtanata, CEO of Kenangan Coffee, cited in Retail.com from the Economic Times.
As part of its brand positioning, Kenangan Coffee is highlighting its use of palm sugar, a traditional palm sugar sourced from Indonesia’s Arenga pinnata. This aligned with the growing demand in India for more natural, health-conscious ingredients. Entry-level offerings like espresso will be priced from ₹99 US$1.15), with Americanos starting at US$1.50. A selection of higher-end beverages will reach up to US$3.80.
Last year, 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 an 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.
Founded in 2017, Kopi Kenangan has become one of SEA’s most prominent coffee chains, with over 900 stores in the Archipelago. In early 2022, the company hit unicorn status, making it the first Southeast Asian F&B brand to surpass a US$1 billion valuation.
