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Abu Dhabi-based Phoenix Venture Partners has announced an investment in COFE Tech through a secondary purchase of existing shares. PVP confirmed that the deal involved buying from existing shareholders and took place before COFE’s pre-IPO financing.
COFE subsequently announced a $43 million pre-IPO round at LEAP in September, with investors including Wa’ed Ventures, Aditum Investment Management, Masarrah Investment Company and Alyasra Foods.
The $178 million post-money valuation cited in PVP’s announcement relates to that later round. PVP hasn’t disclosed the size of its secondary investment, the stake acquired, the transaction valuation or the selling shareholders.
PVP founder and CEO Steve Khayat has joined COFE’s board as the firm’s representative. Khayat said he previously backed the company at the pre-Series A stage in 2018.
The transaction also included co-investors drawn from the investor base of Phoenix Venture Partners Innovation Fund, among them KSH Investments, the international investment platform of the Private Department of Sheikh Mohamed Bin Khalid Al Nahyan.
COFE launched in Kuwait in 2018 under founder Ali Al-Ebrahim as an app connecting customers with cafés for pickup and delivery. It has since expanded into software and procurement services for businesses, while retaining its consumer marketplace.
Its procurement platform handles purchasing, inventory and invoicing, with software agents designed to forecast demand and replenish stock. Its commerce products let brands manage ordering, payments, loyalty and customer engagement. COFE says it serves more than 1,000 clients across 3,000 outlets in Saudi Arabia, Kuwait and the UAE, including Emirates, Etihad Airways and Al-Futtaim Group.
Kuwait-listed Al Imtiaz Investment Group sold almost all its COFE holding on September 1 for consideration comprising $10.084 million in cash and a $2 million interest in Phoenix Venture Partners Innovation Fund. It retained a 0.8% COFE stake that it intended to sell separately. PVP hasn’t confirmed whether its newly disclosed purchase relates to that transaction.
COFE is targeting a Saudi Exchange listing by 2029. PVP says it will support the company’s governance and preparations for public markets.
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