KV Asia Capital together with KWAP and Kapal Api Group invests RM250 million in ZUS Coffee for global expansion

Making Coffee “a Necessity, not a Luxury”
 

Kuala Lumpur, 10 September 2024 - Tech-enabled coffee chain, ZUS Coffee has secured investment from an investor consortium comprising KV Asia Capital (a Southeast Asia focused private equity firm), Kumpulan Wang Persaraan (Diperbadankan) (“KWAP”) (Malaysia’s pension fund for civil servant retirees), and Kapal Api Group (a market-leading Indonesian-based FMCG player, particularly in the coffee industry), with Ernst & Young Malaysia acting as the M&A adviser for the transaction. The strength of this new partnership and investment signals a new chapter and springboard for ZUS Coffee’s growth.
 

ZUS Coffee started from humble beginnings operating out of a single store in Kuala Lumpur in 2019, commencing operations just before the COVID-19 pandemic. Driven by its mission to provide access to high quality coffee at affordable prices, the brand has since scaled significantly to become the largest coffee chain in Malaysia by store count. ZUS operated only 18 stores at the end of 2020; the brand has since grown its Malaysian store count by a remarkable 31x to c.550 as at August 2024. Today the brand operates c.600 stores regionally and is continuing to expand its store portfolio aggressively in Malaysia.
 

Leveraging on its strong brand equity and loyal customer base, ZUS Coffee has a focus on being an international brand. In 2023, ZUS Coffee opened its first store in the Philippines and has seen strong acceptance of its brand and product. Today, ZUS Coffee operates 50 stores in the Philippines and is looking to be a market leader in the country in the next 3 years. New markets are on the horizon – Singapore and Brunei are the next 2 markets that ZUS Coffee will make its debut between September and the end of this year. ZUS Coffee is currently also in active discussions with potential partners in other international markets and expects to serve more customers across new geographies in 2025.
 

ZUS Coffee is constantly finding new and exciting ways to interact with its customers with the introduction of a number of new concepts and products. Earlier this year, the group ventured into the FMCG space with the launch of its halal canned sparkling coffee, COFFIZZ. Building on this momentum, ZUS Coffee continues to introduce new offerings and concepts with the latest exciting new concept, “Coffee Meets Pastry,” where patrons can enjoy high-quality coffee paired with creative pastries in a vibrant and interactive environment.
 

When asked about what the impact of the new investment has on the future of ZUS Coffee, Ian Chua, Founder and Chief Executive Officer of ZUS Coffee, commented: “We’re thrilled to welcome our new partners and we look forward to working together on strengthening our international expansion plans. This partnership will not only grow our core coffee business but also support our move into new verticals like FMCG. With our shared tech-driven approach, we are committed to making specialty coffee accessible, affordable, and exciting. Our vision is to establish ZUS Coffee as a globally recognised Malaysian brand, sharing Malaysian’s commitment to quality and community to coffee lovers worldwide.”
 

KV Asia Capital’s Partner, Jeremy Tan, said “We are delighted to come together with our consortium partners – KWAP and Kapal Api Group – to support a great management team to advance a Malaysian brand onto its next stage of growth. ZUS Coffee has demonstrated a resilient business model, scale advantages and continued product innovation culture. Given its brand equity and resonance with customers, we believe ZUS Coffee is well positioned to further expand its footprint regionally and globally.”
 

KWAP’s Chief Investment Officer, Hazman Hilmi Sallahuddin, stated: “We are proud to be a consortium partner alongside a GP with demonstrable track record, KV Asia Capital and an established strategic conglomerate, Kapal Api Group, to support a Malaysian brand onto its next stage of growth. On our home ground, the focus will be on helping ZUS Coffee solidify its presence by expanding its nationwide store network and to continuously contribute to the community through job creation and local initiatives. Internationally, we are excited to assist the brand in expanding its footprint into new markets globally, further propelling ZUS Coffee, and Malaysia as a significant player on the world stage.”
 

Kapal Api Group’s Chief Executive Officer, Robin Setyono, stated: “We are thrilled to be part of this consortium and we are fully confident that ZUS Coffee will continue expanding its presence in both existing and new markets. In addition to its impressive ability to scale rapidly in its home market, ZUS Coffee’s true strength lies in its agile and driven management team, who are committed to continuous innovation. We find their values closely aligned with Kapal Api Group’s commitment to quality and spirit of growing together. ZUS Coffee is relentlessly striving to deliver better products to more consumers in diverse formats, and we are proud to be part of this exciting journey.”
 

About ZUS Coffee
At the heart of ZUS Coffee, our mission is to bring specialty coffee - inherently seen as expensive - to the local community at an affordable price. We strive to understand what coffee means to you and commit ourselves to delivering greater convenience and accessibility for the community. At every touchpoint, we aim to deliver the best ZUS Coffee experience to ensure that ZUS Coffee is always a Necessity, not a Luxury. Please visit us at the nearest ZUS Coffee outlet or online at https://zuscoffee.com/.
 

About KV Asia Capital
KV Asia Capital is a private equity fund focused on mid-market investments across Southeast Asia. Headquartered in Singapore with offices in Malaysia, Indonesia and Vietnam, the firm has a multi-year track record of successfully investing behind proven entrepreneurs and management teams and compelling business opportunities across a range of industries including consumer, education, healthcare, manufacturing and services.
 

With a strategy of driving improvements via operational value-add and ESG initiatives as well as dedicated strategy and execution support, KV Asia Capital works towards developing market leaders and driving profitable growth. Notable investments in the region include Asia Pacific Education, DXN Holdings, TF Value-Mart and GB Industries in Malaysia, Victoria Care in Indonesia, Bee Logistics in Vietnam and Wildflour Hospitality Group in the Philippines.
 

For more information, please visit: https://www.kvasiacapital.com/