₹99 espresso shot takes on Starbucks and Tim Hortons in India

Indonesian coffee chain Kopi Kenangan, valued at over $1 billion, has entered the Indian market, positioning itself as a lower-priced alternative to global giants like Starbucks and Tim Hortons. The company launched its first outlet in Delhi earlier this month and plans to expand to Mumbai and Bengaluru over the next few 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.

India’s vast population, growing economy, and rising purchasing power in major cities such as Delhi, Mumbai, and Bengaluru have made it an attractive market for global and regional brands. Tirtanata said these factors offer sufficient space for new players in the increasingly competitive cafe sector.

Unlike in markets such as Singapore and Australia, Kopi Kenangan has priced its Indian menu at lower rates to appeal to local customers. The brand is targeting students, young Gen Z, and millennials—many of whom are in their first jobs and are more likely to opt for affordable coffee options.

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 maintain low prices, the brand is sourcing most of its ingredients locally. This strategy also helps the company adapt its menu to local tastes. Tirtanata believes that appealing to the Indian palate will be key to building a customer base.

India’s cafe culture is still developing compared to other Asian markets, but coffee consumption is on the rise. While global names such as Starbucks, Tim Hortons, and Pret A Manger have been expanding, local brands like Third Wave Coffee and Blue Tokai Coffee Roasters have also gained popularity. Established chains like Barista and Cafe Coffee Day (CCD) remain present, although CCD has seen a fall in market share due to debt and financial troubles and is now reducing its store count.

Quick service restaurants like McDonald’s and KFC are also aiming to tap into the coffee space, offering beverages alongside their core menus. But high inflation and muted consumer demand over recent quarters have slowed expansion plans for premium brands like Starbucks.

Kopi Kenangan hopes its pricing and positioning will help it carve a space in this competitive but growing market.