Kuwait-founded technology company, COFE Tech has secured a $178 million valuation following the closure of a new pre-IPO funding round, marking another major milestone in its transformation from a consumer coffee marketplace into an artificial intelligence-powered enterprise technology company.
The investment round was co-led by Wa’ed Ventures, Aditum Investment Management, Masarrah Investment Company and Alyasra Foods, although the amount invested was not disclosed.
Founded in 2018 by Ali Al-Ebrahim, COFE now provides procurement and commerce infrastructure to more than 1,000 businesses across the Gulf.
The company said the latest backing would support its expansion across the Middle East and North Africa (MENA) and preparations for a targeted listing on the Saudi Exchange by 2029.
“COFE Tech brings those operations into a single intelligent platform,” Al-Ebrahim said.
From Coffee Marketplace to Enterprise Technology Company
COFE Tech’s evolution represents one of the most significant aspects of the company’s latest funding announcement. When the business was launched in Kuwait in 2018, it was primarily designed as a consumer marketplace connecting coffee lovers with coffee shops.
Over time, however, the company expanded beyond facilitating coffee purchases and began developing technology for the businesses operating within its ecosystem.
That shift has now transformed COFE into an enterprise technology company focused on helping organisations manage procurement, commerce and other operational activities.
The company currently operates across Saudi Arabia, Kuwait and the United Arab Emirates, serving more than 1,000 clients across 3,000 outlets.
Its customers span coffee shops, restaurants, hotels, hospitals, educational institutions, aviation companies and major corporations, demonstrating how substantially the platform has expanded beyond its original consumer-focused business model.
How COFE’s Agentic AI Platform Works
At the centre of COFE Tech’s new identity is its use of agentic artificial intelligence, which the company applies to enterprise procurement and commerce.
Unlike conventional software that simply stores information or requires employees to perform individual tasks, agentic AI is designed to monitor business activities, anticipate needs and help take action.
COFE’s Agentic Procurement platform, for instance, is intended to bring procurement activities into a unified system, while its Agentic Commerce infrastructure supports broader commercial operations.
The company says its technology can enable AI agents to work within everyday business decisions.
“Agents watch the business, anticipate what it needs and act on its behalf, before a shelf runs empty or a customer is kept waiting,” Al-Ebrahim explained.
Chief Technology Officer Shahood Siddiqui added that the platform allows enterprises to begin with a single workflow and expand across their operations “without re-platforming.”
Major Investors Back COFE’s Next Growth Phase
The latest funding round attracted a group of investors with significant financial and regional influence. The round was co-led by Wa’ed Ventures, the domestic venture arm of Saudi Aramco, alongside Aditum Investment Management, Masarrah Investment Company and Alyasra Foods.
Although the amount raised was not disclosed, the investment placed COFE’s valuation at $178 million. Wa’ed Ventures had previously led COFE’s $15 million Series B funding round in 2023, which also attracted eWTP Arabia Capital, Al Imtiaz Investment Group, KISP Ventures and Rasameel Investment Company.
The new investors expressed confidence in COFE’s transformation and regional growth prospects.
Wa’ed Ventures CEO Anas Algahtani said the company had demonstrated “an impressive ability to evolve from a consumer marketplace into an enterprise technology platform.”
Masarrah further highlighted its growth from its Kuwaiti roots into a technology business serving more than 1,000 enterprises across the Gulf.
COFE Targets Saudi IPO by 2029
With the latest investment secured, COFE Tech is setting its sights on an even bigger milestone: becoming a publicly listed company on the Saudi Exchange.
The company is targeting an IPO by 2029, although the proposed timeline remains subject to the requirements and conditions involved in taking a private company public.
Saudi Arabia has increasingly positioned itself as a major technology and investment hub under its Vision 2030 economic diversification strategy, creating opportunities for technology companies seeking capital and regional expansion.
COFE already has operations in Saudi Arabia and views the country as an important market for its next stage of growth.
The company said the latest funding would support continued expansion across MENA while helping it prepare for the demands of becoming an institutionally ready technology company.
Its leadership also credits the business environments of Kuwait, Saudi Arabia and the UAE with enabling its rapid regional expansion.
Why This Matters
COFE Tech’s latest funding is significant because it illustrates how a company that began with a relatively simple consumer proposition can evolve into a broader enterprise technology platform addressing complex business needs.
Its more than 1,000 customers across 3,000 outlets indicate that its technology is already being deployed across multiple industries and major organisations.
The participation of prominent investors, including an investment arm of Saudi Aramco, also provides a strong vote of confidence in the company’s strategy.
More broadly, COFE’s transformation reflects the growing importance of AI-powered enterprise software in the Gulf, where businesses are increasingly seeking ways to automate procurement, inventory, sales and other operations.
If the company successfully executes its regional expansion and meets the requirements for a public listing, its targeted 2029 IPO could mark another important chapter in the development of the Gulf’s technology ecosystem.
Talking Points
COFE Tech’s $178 million valuation and transition from a coffee marketplace into an enterprise AI platform are genuinely impressive, but the achievement should not be confused with proof of long-term commercial success.
Its 1,000-plus enterprise customers across 3,000 outlets and backing from investors including Aramco’s Wa’ed Ventures provide credible evidence of market traction and investor confidence.
However, COFE’s strategy also carries substantial execution risk. The company is attempting to compete across procurement, commerce, payments, inventory and AI simultaneously, while describing itself as the “Salesforce of MENA”.
This is an ambitious comparison that must ultimately be justified by recurring revenue, profitability, retention and measurable customer outcomes, not impressive branding.
Its targeted 2029 Saudi IPO is another significant test, particularly given that an earlier public-listing ambition did not materialise.
Ultimately, COFE has built a promising regional platform, but its next challenge is proving that its rapid expansion can translate into sustainable economics and defensible technological advantage.
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