With global growth ambitions, Middle East-based coffee marketplace Cofe (styled as COFE by the company) has raised US$15 million in a Series B funding round.
Leading the investment is WAED Ventures, a Suadi Arabia (KSA)-focused fund worth approximately $500 million that is wholly owned by Saudi oil giant Aramco. The investment also includes an influx of money originating through the China-based Alibaba Group, through the firm eWTP Arabia Capital. eWTP has also received support from the KSA Public Investment Fund (PIF).
Also participating in the new funding round with $1 million was Al-Imtiaz Investment Group, a Kuwait-based fund that previously invested $10 million in a Series A round and is Cofe’s largest individual investor.
The new funding round comes just two months after Cofe announced a strategic partnership with the Saudi Coffee Company, which was established in 2022 with a 10-year, $320 million investment pledge through the PIF to help boost the Saudi coffee sector.
Now featuring an app and an online marketplace that includes roasted, packaged coffee products alongside home brewing equipment and subscription options, the Cofe platform was founded by Ali Al Ebrahim in Kuwait in 2018. The company entered the KSA market in 2020, while also entering the United Arab Emirates.
“COFE’s story has been one of resilience,” Ali Al Ebrahim said in announcement of the new funding round. “We have had some great opportunities, but not without its challenges that have needed innovative maneuvering. However, we have persevered in our ambition to create a fertile breeding ground for the growth of the entire coffee ecosystem, especially in the region.”
The Middle East and North Africa (MENA) consumer coffee market is expected to grow by approximately 7.5% annually from 2022-2028, according to a recent report from Mordor Intelligence. Saudi Arabia remains the largest economy and coffee market in the Middle East.