Kopi Kenangan Posts First Profit After Scaling Back Global Push
Indonesian coffee chain Kopi Kenangan reports US$17M profit in 2025 after scaling back diversification. Digital platform drives 116% user growth as CEO warns Southeast Asian startups of over-fundin...
Indonesian coffee chain Kopi Kenangan reported its first full-year net profit of US$17 million in 2025, marking a dramatic turnaround from a loss of 452.2 billion rupiah (~US$34.25 million) in 2022. The company, which operates 1,324 stores across six countries, attributes the shift to refocusing on core operations after what CEO Edward Tirtanata calls "too much funding" led to costly diversification.
Revenue Growth Driven by Digital Platform
Kopi Kenangan's unaudited 2025 results show revenue rising 45% year-on-year to US$184 million. The company projects net income will reach US$29 million in 2026, representing 67% growth.
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Digital transformation played a central role in the turnaround. Monthly digital transacting users surged 116% to 1.5 million by December 2025, while new customer acquisitions jumped 159%, adding 4.5 million customers through its technology platform.
"The biggest problem facing Southeast Asian startups is being over-resourced, not under-resourced," Tirtanata said. "When founders raise substantial capital, they tend to pursue multiple projects simultaneously, diverting attention from core priorities."
The company raised US$109 million in Series B funding in 2020 and US$96 million in Series C in 2021, achieving unicorn status with a valuation exceeding US$1 billion. However, the capital influx led to expansion into side ventures including Cerita Roti bakery, Chigo fried chicken, and Flip Burger, which Tirtanata now acknowledges as distractions that deepened losses 70% in 2022.
Multi-Year Timeline for International Markets
Kopi Kenangan operates 1,137 stores in Indonesia, 158 in Malaysia, and smaller footprints in Singapore, the Philippines, Australia, and India. The company plans to enter Taiwan and the Middle East in 2026, adding approximately 330 stores in Indonesia and 75 in Malaysia.
Malaysia's performance illustrates the patience required for international expansion. The market moved from losses in 2023 to EBITDA of RM5 million (US$1.1 million) in 2024, strengthening to RM17 million (US$3.8 million) in 2025, with net profitability expected in 2026.
"It takes years for you to get the engine rolling right in every country," Tirtanata said, describing the company's approach as "seed-planting" rather than aggressive scaling.
The company customizes offerings for local preferences. In Singapore, 80% of revenue comes from self-ordering kiosks, and coffee contains two shots of arabica to suit stronger taste preferences. The Philippines relies more on cashier interactions, while India stores blend Indonesian flavors with local tastes.
Measured Expansion Despite Unicorn Status
Kopi Kenangan averaged one store opening daily in 2025, adding 347 net new outlets. The company operates small-format stores at 10% to 20% of typical café size, reducing rent and operational costs while maintaining profitability from inception.
The company has no immediate plans for a public listing. "A lot of people go public too early," Tirtanata said, indicating the company will prioritize operational strength over capital market access.
Indonesia remains the dominant growth driver, with Tirtanata projecting it will continue as the primary market for the next five years. The company aims to position Indonesian coffee, produced by one of the world's top four coffee-growing nations, as a premium global brand rather than a commodity export.
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