Indonesia’s coffee industry is on the rise, with research suggesting that the market’s annual growth rate to 2025 will be 9.79%. This year, the coffee sector generated revenues of $9.53 billion USD as per person expenditure reached $34.49 USD. These figures should not come as a surprise for a country ranked as the fourth-largest coffee exporter after Brazil, Vietnam, and Colombia.

According to the Indonesia Coffee Exporters Association, there are 1.3 million hectares of coffee plants in Indonesia. Several varieties are grown, including Kopi Luwak, Java, Bali Kintamani, Flores Bajawa, Mandheling, Linthong, Kalosi, Gayo Kopi, and Toraja.

Global business solutions services company KPMG said in its Q2 Venture Pulse report that venture capital (VC) firms are still searching for promising startups to back. The current Indonesia VC trends show the country is ripe for investment, receiving 70% of the funding in Southeast Asia last year.

With the shift to online services and food delivery, it is no wonder that coffee businesses are attracting investors’ attention. These companies use the grab-and-go model, which makes it convenient for customers to make an order and receive it at their home or office.

Here are some of the top grab-and-go coffee startups in Indonesia attracting attention right now:

Kopi Kenangan

Coffee-chain giant Kopi Kenangan is one of the fastest-growing coffee businesses in Asia, selling 30 million cups last year. It has over 3000 employees, 500 stores in 32 Indonesian cities, with offices in Jakarta, Singapore, and Kuala Lumpur, Malaysia.

Thus far, the company has raised $237 million USD from KUNLUN, Arrive, Sequoia Capital India, Sofina, GIC, Victor Koch, Alpha JWC Ventures, Verlinvest, B Capital Group, and Horizons Ventures. VC firm Sequoia Capital India led the Series B funding, raising $109 million USD for Kopi Kenangan to expand to other countries, such as Thailand and the Philippines.

Kopi Janji Jiwa

Part of the Jiwa Group, Kopi Janji Jiwa is a coffee shop brand located in 100+ cities with 900+ outlets. It uses a bean-to-cup concept, meaning the coffee machine grinds the beans, steams the water or milk, pours it over the grounds, and dispenses the coffee into a cup. The JIWA+ app allows users to order from the menu and select the delivery location.

Recently, Jiwa Group received an undisclosed amount from Openspace Ventures and CapSquare Asia Partners. Its goals are to improve its business services, enhance customer experience, and innovate.

Fore Coffee

Speciality-coffee startup Fore Coffee uses technology and high-quality bean blends to brew unique and enjoyable coffee flavours. It offers integrated mobile apps, delivery services, and digital payments to enhance customers’ experiences.

It has raised $39.5 million USD from MSA Capital, SMDV, East Ventures, Alto Partners Multi-Family Office, Agaeti Venture Capital, Insignia Ventures Partners, and Pavilion Capital.

Kedai Kopi Kulo

The demand for coffee-to-go gave birth to coffee brand Kedai Kopi Kulo, which operates under the KULO Group as the Kulo Coffee Shop. In two years, the coffee shop has expanded to 250 outlets. It sources local Indonesian coffee beans but sells both coffee and non-coffee drinks. It uses a mobile subscription app, KULO App, for food orders, delivery and to allow customers to earn rewards.

Kulo Group has more than 1500 food & beverage (F&B) outlets around the country, with 11 brands under its auspices. Partnership opportunities are available for businesses interested in joining the group.

Hey! Kafe

Hey! Kafe is a digitally-native brand that sells more than 12,000 drinks daily to its target customers, mainly younger people. It tests over 20 products every month and sells coffee, various shakes, soda, tea, and yogurt.  

Hey! Kafe received funding from Trihill Capital and aims to expand from its current number of 60 stores to 300 outlets by the end of next year. Its online delivery orders will likely account for 70% of the sales generated.

The thriving grab-and-go coffee startups in Indonesia indicate a robust market for investors looking to profit from funding new startups. Challenges still exist as companies seek to integrate technology while guaranteeing the customer’s information will be secured.

Furthermore, irregular weather patterns have affected the coffee plant quality and caused losses. According to the US Department of Agriculture (USDA), coffee production output in Indonesia for the 2021-2022 cycle was pegged at a lower figure than 2019, a yield of 10.63 million bags. Due to restrictive responses to the COVID-19 pandemic, such as social distancing, coffee consumption was also expected to decrease with fewer people indulging in the social aspect of meeting in cafes.

Despite these disruptions, coffee prices worldwide have reached a 10-year high this year, and the presence of food delivery apps like GrabFood will ensure the supply chain remains unbroken. If the Indonesia VC trends are anything to go by, the problems mentioned will not make the coffee industry a less attractive investment option.