Indonesian startup Fore Kopi Indonesia, also known as Fore Coffee, raised 353.4 billion rupiah ($21 million) from its IPO, braving the market meltdown sparked by U.S. President Donald Trump’s intensifying trade war.
Backed by Singapore-based private equity firm East Ventures, Fore Kopi sold 1.88 billion shares at 188 rupiah each, valuing the the company at 1.6 trillion rupiah. The company will start trading in Jakarta on Monday following overwhelming demand for its shares. The IPO attracted more than 114,000 new investors, with the maiden share sale oversubscribed by over 200 times.
The company is undaunted even as global equity markets tumbled after Trump imposed higher tariffs on as many countries only to suspend the implementation of some of the tariffs. Indonesia’s benchmark stock index has fallen more than 3% this week, while the rupiah traded near a record low.
“Tanking markets don’t change the fundamentals of our company,” Willson Cuaca, president commissioner of Fore Kopi, told Forbes Asia. “Investors can see Fore is a good company, with high growth, good coffee, numerous and comfortable outlets, and most importantly, we have a unique market of affordable premium coffee segment,”
Companies typically list their shares on the stock exchange when the market is bullish, expecting good valuation as the existing shareholders aim to exit or the company plans to repay debt, said Cuaca, who is also the founding partner of venture capital firm East Ventures, majority shareholder of Fore Kopi. That’s not the case for Fore Kopi. “East Ventures will not exit,” Cuaca said. “We will use the IPO proceeds for expansion plans.”
Trump’s tariff doesn’t affect the company, as Fore Kopi uses Indonesian arabica coffee beans from local farmers and only sells its product within its coffee chain in the country, Cuaca said.
The fresh funds raised from IPO will support the company’s expansion plans. Fore Kopi will spend 275 billion rupiah to add 140 new outlets in the next two years to its existing 257 outlets, It also earmarked 60 billion rupiah to bankroll its subsidiary Cipta Favorit Indonesia’e venture into donuts, while the rest of the proceeds will be used to working capital.
The company has seen robust growth in recent years, with its revenue more than doubling to 1 trillion rupiah in 2024. Cuaca said he expects the topline to increase another 40-50% this year. Indonesia is one of the world’s fastest-growing coffee markets with industry revenue expected to reach $13 billion by 2030 from $6.7 billion last year, according to RedSeer Strategy Consultants.
Fore Kopi was cofounded in 2018 by current CEO Vico Lomar and former CEO Elisa Suteja, who is also a Forbes 30 Under 30 alumna from class of 2020. It initially offered online ordering and on-demand delivery through its app, before establishing physical stores. In 2018, the company raised $9.5 million in Series A funding from venture capital firm East Ventures. It also counts Indonesian tycoon Theodore Rachmat’s investment holding company Triputra Investindo Arya among its shareholders.