1. Startups

JIWA Group Receives Funding, Concept “Grab & Go” Changing the Landscape of the Local Coffee Industry

Digital system development is the focus of many coffee chain players to increase user retention and product distribution

Startups coffee chain "JIWA Group" or known as one of its products, Kopi Janji Jiwa, announced that it has received funding from Openspace and Capsquare Asia Partners. There was no mention of the nominal investment obtained, only that the fresh funds would be focused on increasing business expansion. Moreover, the two investors are considered to have the best practices in the market value chain local and regional.

Since launching in 2018, now they have shaded 3 brand product. Besides coffee, there is Jiwa Toast and Jiwa Tea. In total there are about 1000 o operated in 100 cities in Indonesia. Throughout 2021, they said they had sold 40 million products with a 2x increase compared to the same period the previous year.

"We believe brand POWERFUL SOUL, unique product offerings, 1000 locations offline Its strong presence, coupled with the increasing use of technology across all business elements will continue to solidify its position as a market leader," said Openspace Executive Director Jessica Huang Pouleur.

Technology and strategy development omnichannel

According to the presentation JIWA Group Founder Billy Kurniawan, the impressive growth obtained cannot be separated from the role of digital channels. Including the use of social media to engagement with customers, to integration with the platform online marketplace and food delivery.

They have also launched the JIWA+ application, to support the model "grab &go" which from the beginning became the specialty of Kopi Promise Jiwa. Users can order menus and pay through the application, then can choose the option to pick up on site o nearest or delivered to the location. In the application is also made a system loyalty to increase customer retention.

In addition to improving operations such as adding o, product, warehouse, and logistics, with the support of investors JIWA also wants to accelerate the use of technology. The focus is on several areas, such as improving customer experience, supply chain, and reduce carbon footprint. For founder also has a mission to become the industry leader for the technology-enabled F&B segment, to further enter the Asian market.

"Innovation and customer satisfaction have always been part of Jiwa Group's DNA, ensuring we remain relevant and sustainable in the dynamic F&B industry," said Billy.

Upgrading the F&B business class via digital

According to research (MIX, 2020), 40% of coffee customers in Indonesia are starting to switch to outlets grab &go. This demand is supported by the shift away from instant coffee, as consumers want a higher quality drink -- as well as pairing it with complementary snacks. According to a report compiled by Statista, revenue from the coffee business (roasted coffee) will reach $9,5 billion this year. It is estimated that it will experience a CAGR growth of 9,76% until the period of 2025.

In order to maintain the growth trend, industry players have started to take advantage of digital channels. This strategy was carried out in tandem with an increase in the number of outlets. Draft grab &go itself is very dependent on the existence of outlets, although not a few are only used as places of production (without having room for dine-in).

The application is designed to connect consumers with o, brought from online going to offline - or vice versa. This model is quite efficient, because companies can also take advantage of data obtained from consumer habits recorded in the application, so that they can offer products and services that are more in line with their market share. From the consumer side, the convenience and value added make them willing to take advantage of the application.

Owners coffee chain brand continue to invest in developing technology. In addition to utilizing the existing platforms, they also create their own applications. Some applications even rank quite significantly. Based on our observations of Google Play statistics as of November 05, 2021, we got this data from the Food and Drink category:

RatingApplicationDownloadsRating
6Memories Coffee1 million+4,6
13Cheerful Boba100 thousand+4,3
17Chatime Indonesia500 thousand+4,5
21SOUL+100 thousand+4,7
22ISMAYA100 thousand+4,4
24ForeCoffee100 thousand+4,6
61Flash Coffee50 thousand+4,6
92CULO10 thousand+1,7

Supported by tech startup investors

Adoption technology in business models coffee chain be of particular concern to investors. With The roadmap There, the players were able to provide impressive evidence and business projections – not just the coffee business, but F&B in general. Service based food tech then many are born from innovators. The opportunity to use the technology itself is indeed comprehensive, starting from the supply chain raw materials, for operational and transaction efficiency, to distribution.

With their respective hypotheses, currently several venture capitalists in Indonesia are entering the industry, including:

Venture Capitalistportofolio
Alpha JWC VenturesGoogle, Hangry, Memories Coffee, Lemonilo, My Bowl
East VenturesFore Coffee, Greenly, Legit Group
AC VenturesCoffee Meets Bagels, Fore Coffee
Vertex VenturesDailybox
Openspace VenturesSOUL Group
SALT VenturesHangry, Shiru

However, the coffee business model also continues to develop in Indonesia. last year 2020, Good Coffee introduce myself with mobile coffee chain. Instead of using outlets, they use partners to distribute products around with carts that have been provided and specially designed. Likewise, Jago also uses the application to make it easier for its customers to find partners and place orders.

This industrial landscape has become interesting, especially now that Kopi Kenangan is one of the market leaders coffee chain will potentially be unicorn first in the near future. It is known that their valuation has crossed nearly $900 million. This means that the market share is already that big and the business model adopted can be well received and accepted.scale up even bigger.

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