New investment and ‘strategic assistance’ from Alibaba Group-backed eWTP Arabia Capital will enable the Kuwaiti coffee shop ordering platform strengthen its e-commerce channel across the Middle East ahead of further planned international expansion
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The Series B funding round includes investment from Saudi PIF and Alibaba-backed eWTP Arabia Capital | Photo credit: COFE App
COFE App has raised $15m to develop its e-commerce channel and prepare for further international expansion ‘in the near future’.
Founded in Kuwait in 2018, COFE App is a beverage collection and delivery platform connecting consumers across Kuwait, the UAE, Saudi Arabia and Egypt branded to coffee chains, including Costa Coffee, Dunkin’ and The Coffee Bean & Tea Leaf, alongside smaller independent operators.
COFE App also operates an e-commerce channel, retailing packaged coffee, equipment and merchandise to consumers.
The Series B funding round, led by Saudi Arabian venture capital firm Wa’ed Ventures, also includes investment from eWTP Arabia Capital, initiated in the Middle East by Chinese e-commerce giant Alibaba Group and financially backed by Saudi Arabia’s Public Investment Fund (PIF).
COFE App said eWTP Arabia Capital “brings to the table deep understanding of China’s technology ecosystems and a broad network of Chinese top entrepreneurs”.
“We partner with like-minded entrepreneurs and support the growth of promising businesses in the GCC region. We believe our investment, combined with strategic assistance, will provide COFE with resources to scale and grow. Our investment is a testament to our commitment to promote innovation in the region. We are excited about COFE’s vision in digitising the coffee industry, which would be a multi-billion market with enormous untapped potentials,” said Jerry Li, Founder, eWTP.
The Saudi-led funding round follows COFE App’s strong growth in the kingdom over the last 12 months.
Having entered the Saudi market in 2020, COFE App acquired digital ordering platform Kaffeen in March 2022 to expand its customer base in the kingdom.
The online coffee marketplace COFE App was also an official partner of Riyadh Season 2022, a city-wide celebration of the Saudi Arabian capital and its culture. COFE App hosted COFE Shops across seven booths at the event, representing international franchises and local coffee roasters.
In December 2022, COFE App announced a new partnership with Saudi Coffee Company to enhance the profile of Saudi-grown coffee in the Middle East. The agreement will enable Saudi coffee producers to sell their products via COFE App’s ecommerce platform to consumers in the region.
COFE App’s previous funding round reached $10m in June 2021, which the company said would kickstart expansion into Egypt, where it launched in 2022, as well as planned launches in the UK and Turkey.
World Coffee Portal research found the total Middle East branded coffee shop market comprises more than 8,800 outlets and is forecast to reach 11,840 outlets in 2027.
Saudi Arabia has the largest branded coffee shop market in the region with more than 3,550 outlets, significantly larger than the UAE (1,394), Kuwait (655) and Egypt (579).