Indonesian coffee brand Kopi Kenangan, with a valuation exceeding $1 billion, has made its entry into the Indian market, aiming to offer a more affordable option compared to international names like Starbucks and Tim Hortons. The company opened its first café in Delhi earlier this month and has plans to expand into Mumbai and Bengaluru in the coming years.
“For any retail brand, it would be such a waste if you miss the train in India,” said Edward Tirtanata, co-founder and group CEO at Kenangan Brands. The company is backed by Peak XV Partners and B Capital, which was co-founded by Meta co-founder Eduardo Saverin.
With its large population, expanding economy, and increasing consumer spending in key urban centers like Delhi, Mumbai, and Bengaluru, India has become a prime destination for both global and regional brands. According to Tirtanata, these favorable conditions create ample opportunity for new entrants in the highly competitive café industry.
In contrast to markets like Singapore and Australia, Kopi Kenangan has adopted a more budget-friendly pricing strategy in India to better connect with local consumers. The brand is focusing on students, Gen Z, and young millennials—especially those early in their careers—who are more inclined toward cost-effective coffee choices.
Prices begin at ₹99 for an espresso shot and stay below ₹150 for larger servings—₹80-100 less than what Starbucks or Indian premium chains like Blue Tokai typically charge. “Our price points are far more accessible than other international chains. We are positioned well within a gap that exists in the Indian market,” Tirtanata said.
To keep its prices affordable, Kopi Kenangan is sourcing most of its ingredients locally—a move that not only reduces costs but also allows the brand to tailor its menu to Indian preferences. Tirtanata emphasizes that connecting with the local palate is crucial for establishing a loyal customer base in India.
Although India’s café culture is still in its early stages compared to more mature Asian markets, coffee consumption is steadily increasing. Global players like Starbucks, Tim Hortons, and Pret A Manger have been expanding their presence, while homegrown brands such as Third Wave Coffee and Blue Tokai Coffee Roasters are gaining significant traction. Traditional chains like Barista and Café Coffee Day (CCD) continue to operate, though CCD has experienced a drop in market share and is scaling back its store network due to financial challenges.
Meanwhile, quick service restaurants like McDonald’s and KFC are also entering the coffee market by adding beverages to their existing menus. However, rising inflation and subdued consumer spending in recent quarters have slowed the growth trajectory of premium brands like Starbucks.
Kopi Kenangan is confident that its strategic pricing and market positioning will enable it to establish a foothold in India’s competitive yet expanding coffee market.
