COFE Tech Closes Pre-IPO Round at Valuation of $178 Million
- COFE Tech, founded in Kuwait and formerly known as COFE App, has closed a pre-IPO funding round at a valuation of $178 million, led jointly by Waed Ventures, Aditum Investment Management, Masarrah Investment Company, and Alyasra Foods, without disclosing the investment amount.
- COFE was established in Kuwait in 2018 by Ali Al-Ibrahim and has evolved from an online marketplace for coffee aimed at consumers to an enterprise technology company providing procurement and trading infrastructure powered by artificial intelligence, alongside its consumer marketplace.
- The company stated that the investment will support its continued expansion in the Middle East and North Africa, along with its preparations to target an IPO in the Saudi financial market by 2029.
- In 2023, COFE closed a Series B funding round of $15 million led by Waed Ventures, with participation from eWTP Arabia Capital, Al Imtiaz Investment Group, KISP Ventures (KFH Capital), and Rasameel Investment Company.
COFE Tech, formerly known as COFE APP, which specializes in operating AI-based enterprise solutions and providing smart procurement and trading infrastructure for over 1,000 companies in the Gulf region, announced during the LEAP 2026 conference the closure of a pre-IPO funding round at a valuation of $178 million.
The round was co-led by Waed Ventures, the venture capital arm of Aramco, along with Aditum Investment Management, Masarrah Investment Company, and Alyasra Foods. The investment puts COFE Tech on track to target an IPO in the Saudi financial market by 2029, in line with the goals of Saudi Vision 2030.
Ali Al-Ibrahim, founder and CEO of COFE Tech, stated: "Many companies in our region still manage their procurement, sales, and inventory operations through separate systems that do not communicate with each other, which costs them a lot of efficiency at every stage. COFE Tech consolidates these operations into a single smart platform, where AI agents monitor businesses, anticipate their needs, and act on their behalf before products run out on shelves or customers have to wait."
He added that the support from Waed Ventures, Aditum Investment Management, Masarrah Investment Company, and Alyasra Foods reflects confidence in the company's vision for the future of enterprise software in the Gulf, noting that COFE Tech intends to translate this support into further growth in the Middle East and North Africa.
Al-Ibrahim continued: "Since COFE launched from Kuwait in 2018, we have rapidly expanded across the Gulf, including the UAE and Saudi Arabia. The business and innovation environments in Kuwait, Saudi Arabia, and the UAE have contributed to this growth. Today, COFE Tech represents a model of what economic visions supporting innovation in Gulf countries can produce when integrated, and what the AI ecosystem in the region offers ambitious Gulf companies in terms of opportunities for growth and regional expansion."
Shahood Siddiqui, CTO of COFE Tech, stated that the company was built on a single technical foundation supporting two main pathways, allowing enterprises to start with one workflow and then expand to encompass their entire operations without needing to transition to a new platform.
He added that this infrastructure has proven effective in actual use, with institutions across the Gulf using the company's solutions to develop growth, procurement, and financing operations, while the new round will allow the company to continue developing its technical infrastructure.
Anas Al-Qahtani, CEO of Waed Ventures, stated: "COFE Tech has demonstrated remarkable capability to evolve from a consumer-focused marketplace to an enterprise technology platform addressing key challenges in procurement and commerce. The increasing adoption of its solutions by Gulf institutions confirms the strength of its technology and the size of the opportunity ahead."
He added that Waed Ventures sees significant potential for COFE Tech to enhance its presence in Saudi Arabia and build a technology company that is institutionally qualified for long-term growth in the region.
Manoj Mahadev, Head of Investments at Aditum Investment Management, stated that the participation of the Aditum Venture Capital Fund in the round reflects its approach to identifying promising investment opportunities globally and in the Middle East and North Africa markets, supported by the group's presence in the UAE and Saudi Arabia.
For her part, Sonali Goila, Head of Venture Capital at Aditum Investment Management, stated that COFE Tech combines disciplined expansion in key regional markets with growth in its enterprise-focused business, alongside developing governance frameworks in preparation for the next phase of growth.
Dalia Al-Mutlaq, Principal and Board Member at Masarrah Investment Company, stated that building sustainable companies requires long-term capital and the ability to support companies through their most ambitious growth stages, noting that COFE Tech has expanded from its roots in Kuwait to serve over 1,000 institutions across the Gulf.
Yusuf Nasser Al-Faleej, Head of Real Estate and Projects at Alyasra Group, stated that participation in the round reflects the group's confidence in the company's growth potential and the ability of ambitious technology companies to build a strong base in the region and launch from there to other markets.
The closure of the funding round for COFE Tech was announced during the LEAP 2026 conference in Riyadh, attended by founder and CEO Ali Al-Ibrahim and co-founder Hamad Musaad Al-Sayer, along with representatives from the participating investors.
The new round supports COFE Tech's transformation from a consumer-focused marketplace to an enterprise technology company relying on agent-based AI, through two main pathways: Agentic Procurement, a unified infrastructure for enterprise procurement, and Agentic Commerce, a unified technological infrastructure for enterprise commerce operations. The two pathways work alongside the company's consumer-facing marketplace, which formed the core activity from which the platform launched.
COFE Tech currently serves over 1,000 clients across 3,000 outlets in Saudi Arabia, Kuwait, and the UAE, including sectors such as cafes, restaurants, hotels, hospitals, education, aviation, and corporations. Its client list includes companies and institutions such as Emirates, Etihad Airways, Kuwait Airways, Al-Futtaim Group, Kuwait Finance House, the Central Bank of Kuwait, stc, Aramco, and Alibaba Cloud.
-- Price
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