INDONESIA – Kopi Kenangan, Indonesia’s grab-and-go coffee chain has raised US$109 million in a Series B funding round led by existing investor Sequoia Capital to accelerate the startup’s expansion in Southeast Asia.

According to a DealStreetAsia report, B Capital, Horizons Ventures, Verlinvest, Kunlun and Sofina as well as return backer Alpha JWC Ventures also participated in the funding round in a deal that counts as one of the largest consumer investments in the region.

Kopi Kenangan plans to use proceeds from the investment round to further build its operations in Indonesia, launch new products, invest in technology to better serve its customers, and protect employees amid the COVID-19 pandemic.

“The hospitality industry is facing the biggest existential crisis of our generation,” said Kopi Kenangan co-founder and CEO Edward Tirtanata in a statement.

“It’s hard to tell when the sector will return to normal but when it does, it will look very different. As a growing startup, we are adapting quickly to the challenge through contactless commerce and uncompromising hygiene standards throughout our stores.”

The coffee chain, which currently operates 324 stores across Indonesia, has also unveiled plans of expand to Thailand, the Philippines, and Malaysia after the pandemic.

“F&B is one of the largest consumer opportunities in Southeast Asia and Kopi Kenangan has built a very authentic and compelling identity among millions of Indonesians,” said Sequoia Capital vice president Rohit Agarwal.

“We are looking forward to bringing the same delightful experience and tasty products in more categories and formats as the business expands into newer markets like Thailand, Philippines, and Malaysia post COVID-19.”

Following the investment, Eduardo Saverin the co-founder of Facebook and and B Capital co-founder will join Kopi Kenangan’s board. “I am looking forward to working closely with Kopi Kenangan and build a global brand celebrating Indonesian and Southeast Asian flavors,” said Saverin.

The investment round marks a significant milestone in Kopi Kenangan’s growth, especially considering that the startup raised US$8 million in the first external funding seed round from Indonesia’s Alpha JWC Ventures in October 2018.

Less than a year later, the company was able to bag a US$20 million growth funding round from Sequoia India. In 2019, the company wrapped up an undisclosed Series A extension round, attracting investors, including Arrive, Serena Ventures, basketball player Caris LeVert, and Sweetgreen CEO and co-founder Jonathan Neman.

The latest backing received by Kopi Kenangan indicates investor bullishness about the coffee business and gives Kopi invaluable liquidity at a time when the F&B space, in general, has been crippled by the market downturn brought about by COVID-19.