JAKARTA (TheInsiderStories) – An Indonesian on-demand specialty coffee startup Fore Coffee raised US$8.5 million funding from investors, said the company today (01/31). The fresh fund came from syndication of East Ventures, SMDV, Pavilion Capital, Agaeti Venture Capital, Insignia Ventures Partners, and other investors.
As of today, Indonesia is the second largest land plantation for coffee in the world, just behind Brazil. However, Indonesia has one of the lowest coffee productivity index, as it is only able to produce 520 kg/HA lower if compared to Vietnam with 2,445 kg/HA.
As a result of having huge plantation but low productivity, Indonesia is still positioned at #4 coffee exporter among “The Bean Belt” countries. But, the rapid growth of middle-class society in the country today has given birth to a new phenomenon, namely the rise of coffee drinkers in the domestic market.
In the past year, Indonesian coffee consumption has reached 314,400 tons, with an average growth of 8.22 percent per year. As for fresh coffee, it has a special market value reached US$ 1.5 billion3 in 2017.
Fore Coffee was established in August, 8, 2018, with a passionate coffee startup aiming to brew the best specialty coffee for customer. And have a mission to revitalize Indonesia coffee glory, especially Arabica beans for specialty coffee. Focusing on specialty coffee, the company aimed to boost the demand for Arabica beans.
“We decided to use only Arabica beans, which translate to higher income for the local farmer, with a certified organic farm and certified fair trade,” said Fore Coffee CEO Robin Boe.
Meanwhile, Managing Partner East Ventures Willson Cuaca, expressed that Fore coffee is a crossed hypothesis of Indonesian coffee and digital economy. He comments, “Fore Coffee is a new kind of SME that won’t be able to exist in Indonesia a couple years ago.”
But today, the mature digital ecosystem in Indonesia has allowed it to gain momentum. Within 5 months, Fore Coffee grow from 0-16 outlets, deliver over 100,000 cups of high-quality coffee every month. On company strategies, Fore Coffee online to offline strategy integrating technology such as mobile application and the presence of their retail stores.
As informed, Fore Coffee currently has 16 outlets located in major malls across Jakarta. In mid-January, Fore Coffee launched a special Rose Latte to their menu in collaboration with Olivia Lazuardy. This startup is founded by Robin Boe, Jhoni Kusno, and Elisa Suteja (formerly East Ventures’ Associate).
While, East Ventures is an early stage venture fund focused on Southeast Asia and Japan. Over several years, East Ventures has invested in hundreds of companies in Indonesia, Singapore, Japan, Malaysia, and Thailand. The majority of East Ventures’ portfolio firms have been able to raise follow-on financing rounds.
Written by Daniel Deha, Email: firstname.lastname@example.org