MENA – COFE, MENA’s premiere online coffee marketplace, has raised US$15 million in investment capital from its Series B funding round, led by WAED Ventures, the Venture capital (VC) arm of Saudi Arabian public petroleum and natural gas company Aramco.
The round also had the participation of eWTP Arabia Capital, the Electronic World Trading Platform (eWTP) Capital initiated by Alibaba Group in the Middle East Region, Rasameel Investment Company, and KISP Ventures (KFH Capital).
The round also had a contribution of US$1 million from Al Imtiaz Investment Group, taking its total investment in the coffee ordering platform to USD 11 million, having invested US$10m in the last round.
The leading investment group based in Kuwait and listed on the Boursa Kuwait is COFE’s largest investor by contribution.
COFE, founded in 2018, has become an integral player in the US$44 billion MENA coffee market forecasted to expand at a CAGR of 7.5% between 2022-2027, leading in innovation in the regional coffee industry, as well as transforming the way users reach their daily dose of caffeine. COFE App currently operates in Kuwait, KSA, UAE, and Egypt.
Apart from offering a fast and efficient ordering platform for coffee, COFE said its e-commerce market also allows users to purchase coffee beans, machines, and other home brewing accessories, creating a lasting impact on the entire coffee industry B2B supply chain ecosystem.
The funds raised in this latest series will be focused on the brand’s e-commerce offering, furthering the company’s ambition to become a complete coffee solution provider.
Citing a survey conducted by the Communication &Information Technology Commission (CITC) of Saudi Arabia, which showed it has had wide acceptance from users in the Kingdom, attributing its success in strengthening its position in the regional market, the startup plans to expand internationally soon.
Al Imtiaz Investment Group Executive Vice President, Saad Al-Bader noted that his group believes COFE is ready to scale internationally into new markets and further strengthen its market position and service offerings.
Commenting on the investment, 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 digitalization of farm-to-cup consumerism across the region.”
Most recently, the e-commerce company signed an agreement with the Saudi Coffee Company (SCC) to propel the Saudi coffee industry into the digital era, consequently empowering local producers to connect with end users with greater ease and convenience.
SCC is a Public Investment Fund (PIF) company launched by the sovereign wealth fund of Saudi Arabia with a mandate to develop the Saudi coffee industry.
SCC plans to invest over SAR 1.2 billion ($319 million) in the national coffee sector over the next ten years to increase annual output from 300 tons today to more than 2,500 tons by 2030.
Saudi’s domestic coffee market was estimated to be worth US$1.96 billion in 2021 and is expected to grow to US$2.78 billion by 2025.