Indonesian grab-and-go coffee chain operator Kopi Kenangan significantly narrowed its losses in 2024 as revenue growth and tighter cost controls lifted operating cash flow, according to a recent regulatory filing reviewed by DealStreetAsia.
The Southeast Asia-focused coffee operator reported a net revenue of about $119 million for the year ended December 31, 2024, up 23.6% year on year from $96 million in 2023, according to a filing with Singapore’s Accounting and Corporate Regulatory Authority (ACRA).
Despite continued investments, Kopi Kenangan reduced its net loss to about $2.3 million, compared with a $18.4-million loss a year earlier.
Loss before income tax narrowed sharply to $4.7 million from $18 million, supported by both revenue growth and tighter control over discretionary costs.
Gross revenue rose to $136 million, reflecting stronger sales across its core food and beverage business as the group continued to scale its store network. Sales discounts and returns also increased to $14.2 million, broadly in line with higher transaction volumes.
A key contributor to the improved bottom line was a steep cut in marketing and advertising expenses, which fell 38.6% to $4.4 million in 2024 from $7.2 million a year earlier.
The company appears to have relied less on promotions and customer acquisition spending as brand recognition strengthened in its core markets.
At the same time, core operating costs rose alongside expansion. Cost of materials increased to $43.9 million from $36.8 million, reflecting higher sales volumes.
Employee compensation climbed to $32.3 million, up from $30.1 million, while depreciation and amortisation expenses rose as the group continued to invest in store openings, equipment, and technology platforms.
The improvement was most evident in cashflow performance. Kopi Kenangan generated $21 million in net cash from operating activities, a more than fourfold increase from $5.1 million in 2023, marking a clear operational inflection point.
The stronger cash generation was partly driven by improved working capital management, including higher trade payables and contract liabilities.
Kopi Kenangan’s consolidated financials
The group spent $12.1 million on property, plant, and equipment during the year as it continued to open and refurbish outlets. Net cash used in investing activities amounted to $18.8 million, offsetting much of the operating inflow.
As a result, cash and cash equivalents declined modestly to about $50 million at the end of 2024 from $52.3 million a year earlier.
On the balance sheet, total assets increased to 1.95 trillion rupiah from 1.85 trillion rupiah, while total liabilities rose to 552.5 billion rupiah, largely due to higher lease liabilities linked to its physical store footprint.
Kopi Kenangan was established in 2017 and popularised the so-called grab-and-go concept that coincided with the growth in the online food delivery sector in the country.
It joined the unicorn club in 2021 after raising $96 million in Series C funding from investors, including Tybourne Capital Management, B Capital Group, and others.
Top shareholders of Kopi Kenangan
In 2024, the coffee chain opened more than 180 branches across Indonesia, Malaysia, and Singapore, and also entered the Philippines.
DealStreetAsia reported in October that Kopi Kenangan’s early backers, Peak XV Partners and Alpha JWC Ventures, may be close to selling a part of their stake in the coffee chain to secondary investors as they look to improve their exit scorecard and increase distributions-to-paid-in capital (DPI).
The unicorn is looking to raise upwards of $200 million in the funding round, which may be a mix of primary and secondary share sales, at a valuation of over $1.2 billion, according to the sources. DealStreetAsia DATA VANTAGE shows the company was last valued at slightly over $1 billion.
