A 35-year-old entrepreneur transformed a small Indonesian coffee stand into a successful unicorn startup, generating $100 million in annual revenue.

Every day, Edward Tirtanata would order a large cup of coffee from either Dunkin' Donuts or 7-Eleven in college.

The CEO of Kopi Kenangan, a 35-year-old venture-backed unicorn coffee company, still drinks coffee daily, but now it's three or more cups a day for "product testing" purposes.

An Indonesian coffee stall that began in 2017 has now grown into an international coffee brand worth over $1 billion, with over 800 locations across Southeast Asia.

According to CNBC Make It, the company generated more than $100 million in sales in 2023, as per the documents provided.

In seven years, Kopi Kenangan evolved from a small Indonesian coffee stand to a venture-backed unicorn coffee enterprise.

Entrepreneur in the making

Tirtanata grew up in the Indonesian capital of Jakarta.

In 2007, he relocated to the U.S. to attend Northeastern University in Boston, where he majored in finance and accounting.

From the beginning, he possessed an entrepreneurial spirit, despite never liking to study.

"As a child, I was mischievous and didn't prioritize studying, but whenever there was a chance to earn money or engage in business, I became enthusiastic."

"Doing it brings me immense pleasure, and it's not just about the money. It's something that truly motivates me," he stated.

Tirtanata, even as a student, discovered a fundamental business principle: "Buy low, sell high." He instinctively learned to profit from selling Pokémon cards and gaming bots to friends at school.

Tirtanata, inspired by his entrepreneurial parents, relished the challenge of building his own path in the world.

In his first year of college, he got a pivotal phone call from his mom, who disclosed that his dad's company was facing significant financial difficulties.

Tirtanata sped through his five-year program and finished it in three years after the call.

He quickly returned to home Indonesia and became his father's business partner.

Tirtanata, despite facing financial difficulties with his family, went on to forge his own entrepreneurial path, which he believes made him a better entrepreneur.

Business beginnings

In 2015, Tirtanata established a tea shop chain called Lewis & Carroll across Indonesia. However, by the time he opened his fifth store, he discovered that the tea shop's profitability did not meet his expectations.

One day, while chatting at his tea shop, Tirtanata and his friend James Prananto discovered that many big coffee and tea chains in Indonesia were unaffordable for the local population.

In the U.S., a Starbucks tall latte costs about 2% of the median daily income, but in Indonesia, it costs more than 30%.

The idea of Kopi Kenangan was born.

In 2017, Tirtanata and Prananto invested $15,000 in their first grab-and-go location in Jakarta, Indonesia. This model allowed them to save on the costs of renting and designing a sit-down cafe space, and instead, invest that money into quality ingredients.

Tirtanata stated that instead of concentrating on the sofa or quick internet, we will prioritize a premium coffee.

Kopi Kenangan scaled to over 200 locations and 10 cities within the first two years of operations due to this decision.

Kopi Kenangan's secret formula

The coffee industry is highly competitive, particularly in urban centers.

What sets Kopi Kenangan apart from its competitors, according to Tirtanata, are three key factors: its grab-and-go model, its use of technology, and its hyperlocal approach.

While global coffee chains prioritize consistency, people have different tastes and preferences, he told CNBC.

Tirtanata stated that this was the location where they developed their strategy for global expansion, ensuring that the coffee's sweetness and strength would fit the market they were operating in, using a data-driven approach.

A latte in Singapore will taste different from a latte in Indonesia due to a data-driven hyperlocal approach.

Kopi Kenangan more than tripled its store count during the pandemic due to Tirtanata and Prananto's increased efforts to integrate technology into their business.

From Indonesia to the world

According to CNBC Make It, the coffee chain has raised over $230 million in funding from investors worldwide as of April, based on documents obtained.

In Indonesia, Malaysia, and Singapore, there are Kopi Kenangan stores available.

Tirtanata aims to grow the company worldwide and eventually list it in the U.S. market.

As a business expands, leadership becomes increasingly complex, so he continuously strives to improve his leadership skills, he stated.

"I am thrilled about the future that awaits us. I am confident that we are merely at the start of our journey."

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