COFE App acquires Saudi based online coffee ordering platform “Kaffeen”
COFE App, the online coffee marketplace recently acquired Saudi-based Kaffeen (Bean Creator IT), a popular online coffee ordering platform, COFE revealed in a press statement.
Kaffeen was founded in 2018, by brothers, Hassan & Hashem Aljawad. It has focused on easing the ordering and payment process for instore customers, enabling them to shorten the distance between them and their daily cuppa through counter pickup services.
The statement indicated that Kaffeen shares a similar ethos to COFE, that believes in helping people spend more time with their coffee instead of waiting for it.
The Saudi platform has succeeded in creating a loyal fan-following amongst coffee-lovers in the Kingdom since its inception.
The statement indicated that coming hot on the heels of the Sippy acquisition in January this year, the acquisition of Kaffeen is a result of an extensive study of the e-commerce market, its direction, and the impact of the pandemic on consumer behavior.
It added that with Convenience through e-commerce being one of the top trends to come out of the pandemic, according to KPMG’s Coffee in 2021 report ‘Prepare for Takeoff’ – consumers appreciate the need for convenience given health concerns and social distancing standards, which while laxed as we move into a post-COVID world are lasting trends in consumer evolution.
“For COFE we have always sought to create a collaborative ecosystem and our acquisition of Kaffeen is yet another step in that direction. We want to work with people who have the vision to change the way people access their coffee worldwide, and that passion is very strong with Kaffeen co-founders Hassan & Hashem Aljawad. With Kaffeen’s market expertise and experience onboard, we are sure to reach out to even more coffee lovers across KSA and beyond,” said COFE App Founder & CEO, Ali Al Ebrahim.
With pickup already being a key element in the bouquet of services COFE offers, since its very inception, it was only natural for the brand to combine forces with Kaffeen, reaching out to an even larger audience base, especially those across the Kingdom of Saudi Arabia. The acquisition will further facilitate COFE’s ambitious growth strategy, as the startup continues to expand its presence in the region.
Commenting on the acquisition, Kaffeen Co-Founder, Hassan Aljawad said, “We had launched Kaffeen with a mission to disrupt the online coffee market, and joining hands with COFE, I believe is the logical next step when it comes to bringing our mission to fruition. We are extremely excited about this acquisition and look forward to seeing us grow from strength to strength together.”
The acquisition of Kaffeen and Sippy Beans in the first quarter of 2022 are strong indicators that COFE is looking to strengthen its reach within the region, before
Founded by Ali Al-Ebrahim, COFE App currently operates in Kuwait, KSA, UAE, Egypt, and Turkey, with further international expansion in the pipeline. The platform, which placed among the top five start-ups in the tech innovation category at the London Coffee Shop Innovation Expo, has grown from strength to strength since its official launch in November 2018, and completed a Series-B funding round in April 2021, raising $10 million.
COFE App is a state-of-the-art coffee-centric application that provides quick access to a wide range of international coffee franchises and artisanal coffee brands through multiple premium services and features on one platform.
Saudi Arabia’s Coffee Market is projected to grow at a CAGR of 6.2% during 2021-2027
A report by ResearchAndMarkets.com has estimated that the Kingdom’s Coffee Market is projected to grow at a compound annual growth rate (CAGR) of 6.2% during 2021-2027.
The report indicated that the Saudi Arabian coffee market grew at a considerable rate in recent years on the back of changing consumer preferences, fast-paced lifestyle, and growing working-class population. Additionally, the coffee market across the country is majorly import-driven. African, Asian, and Latin American nations are the major exporters of coffee across the Kingdom of Saudi Arabia.
Furthermore, the spread of COVID-19 led to an unreasonable hike in the coffee market, owing to ‘stringent nation-wide lockdown policy’ adopted by the Saudi government, which resulted in, unnecessary piling of packed food items which also includes instant coffee packs and pouches by the inhabitants of the country during 2020.
The report indicated that by distribution channel, hypermarket/supermarket bagged the highest revenue share in 2020, on account of limitless buying option available, in comparison to its counterpart i.e. online platform combined with lack of trust while making payments via digital platforms. However, the online channel is projected to witness significant growth opportunities in the forthcoming years, owing to contact-less buying/delivery and cash-less transactions options.
Further, based on bean types, Arabica occupied the majority of revenue share in 2020, and the same trend is expected during the forthcoming years, owing to end-consumer taste combined with health benefits for such bean type as Arabica is much sweeter and has more lipid contents than its other counterparts i.e. Robusta, Liberica, and Excelsa. Additionally, the higher acid content in Arabica beans makes it perfect for improving the taste of wines and chocolates. Hence, Arabica is highly demanded in the F&B industry of Saudi Arabia.
