JIWA Group Receives Funding, Grab & Go Concept Changes Local Coffee Industry

Coffee chain startup “JIWA Group” or known as one of its products, Kopi Mantap 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 local and regional value-chain markets.

Since launching in 2018, now they have overshadowed 3 product brands. Besides coffee, there is Jiwa Toast and Jiwa Tea. In total there are around 1000 outlets 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 JIWA’s strong brand, unique product offerings, 1000 strong offline locations, 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.

Omnichannel Strategy and Technology Development

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

They have also launched the JIWA+ application, to support the “grab & go” model that has been typical of Kopi Janji Jiwa since the beginning. Users can order menus and pay through the application, then can choose the option to pick it up at the nearest outlet or have it delivered to the location.

In the application, a loyalty system is also created to increase customer retention. In addition to improving operations such as adding outlets, products, warehouses, 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 reducing carbon footprint. The founders also have 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 grab & go outlets. This demand is supported by a 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 (roast 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.

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.

The grab & go concept itself is very dependent on the existence of outlets, although not a few are only used as production sites (without having room for dine-in). Apps are designed to connect consumers with outlets, taking them from online 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. Coffee chain brand owners 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.

The adoption of technology in the coffee chain business model is a special concern for investors. With the existing roadmap, players can provide impressive evidence and business projections – not just the coffee business, but F&B in general.