COFE, the internet-based coffee marketplace, has successfully raised $15M through its Series B funding round. The company was established by Ali Al-Ebrahim in November 2018, and it presently serves customers in Kuwait, Saudi Arabia, UAE, and Egypt, with plans for international expansion.
COFE was ranked as one of the ten most downloaded apps in 2020 by CITC KSA and was also the official main partner for Riyadh Season 2022. The main investor in this round is Waed Ventures, a Saudi-focused venture capital fund valued at $500M that is fully owned by Aramco.
eWTP Arabia Capital, which has received significant funding support from the Public Investment Fund (PIF) and the Electronic World Trading Platform (eWTP) Capital initiated by Alibaba Group in the Middle East region, is another key investor.
Al Imtiaz Investment Group and KISP Ventures (KFH Capital), and Rasameel Investment Company, a Kuwait-based wealth management fund also participated in the round. Al-Ebrahim said, “COFE’s story has been one of resilience. We have had some great opportunities, but not without challenges that have needed innovative maneuvering. However, we have persevered in our ambition to create a fertile breeding ground for the growth of the entire coffee ecosystem, especially in the region”.
“we have always sought to grow all our partners, investors, and the industry with us. None of this would have been possible without the hard work and trust of everyone that has continued to take this journey with us, especially our users.”
Since its inception in 2018, the platform has become an integral player in the $44B MENA coffee market Additionally, the global coffee market is also forecasted to expand at a CAGR of 7.5% between 2022-2027. The funds raised by COFE in its Series B round will focus on the brand’s e-commerce offering. COFE has gained significant popularity among users in Saudi Arabia since its launch in 2020, and it was recently recognized as one of the top ten most downloaded food delivery and restaurant apps in the kingdom, according to a survey conducted by the Communication & Information Technology Commission (CITC) of Saudi Arabia.
COFE’s focus on the coffee industry in Saudi Arabia has attracted the attention of Saudi-based investors, and the company has recently partnered with the Saudi Coffee Company, which is backed by the PIF and has a mandate to invest SAR1.2B ($319M) in the national coffee sector over the next decade. Wa’ed Ventures, a Saudi-focused venture capital fund, and eWTP Arabia Capital, which is supported by the Public Investment Fund (PIF) and Alibaba Group, have both invested in COFE, with the former committing to advancing sustainable innovation in emerging tech segments in Saudi Arabia. Al-Imtiaz Investment Group, COFE’s largest investor, has invested $1M in the Series B round, bringing its total investment in COFE to $11M.
