Gulf Bank’s new podcast highlights the little-known origin stories behind some of our favorite local brands

 

Kuwait, 04 December 2021: In the third episode of Gulf Bank’s new podcast, “Let’s Talk Business,” Gulf Bank interviewed Ali Al-Ebrahim, the Founder at COFE app. The program, hosted by Tareq Al-Saleh, Deputy General Manager of the Economic Research Unit at Gulf Bank, presents entrepreneurial stories within a simplified economic framework, targeting budding entrepreneurs who are considering starting businesses of their own. The Bank’s new podcast is part of its overarching strategy of fostering economic and community sustainability in Kuwait.

 

Realizing & Seizing Opportunities

 

At the beginning of their discussion, Al-Ebrahim discussed the COFE app’s pre-launch stage, which included testing and doing away with various business ideas before deciding to start their coffee application. He said: "At a time when most sectors had unique digital applications supporting them, we noticed a gap in the coffee sector, which prompted us to study this sector and its opportunity for growth not only in Kuwait, but also the world. Throughout our research, we found some major international companies heading towards the Kuwaiti market, which confirmed our theory about the expected market size, and indicated to us that there were significant opportunities for growth.”

 

Innovation & Value Proposition

 

The COFE app is characterized by its innovation, diversity of services and unique features, working dynamically to provide the best possible value to customers and cafe owners alike. Al-Ebrahim touched on these special value propositions, saying: "Our business model and the services we provide extend way beyond delivery. The pick-up service, which allows customers to pick up their coffees from the coffee shop, is one of the app’s most important features because it enables the customer to order their coffee and pick it up from the cafe without the hassle of having to wait in line, especially in the morning. The COFE app also offers customers a loyalty program and rewards on every order, which is hugely beneficial for customers — especially those who consume coffee on a frequent basis. In addition, we also offer a drive-thru service.”

 

Al-Ebrahim added, “Cafe owners also benefit from being on the COFE application through exposure, reaching new customers everywhere. Our application, which combines many features, meets the needs of cafe owners, and saves them the hassle and cost of signing up with multiple delivery applications. It’s also worth noting that we charge the lowest commission per order in the industry, which is up to half of what other companies are charging. Thanks to the way our app and loyalty program operate, coffee shop owners also can get access to indispensable data that extend way beyond their best-selling products and the average transaction value. In addition to that information, we also provide coffee shop owners the opportunity to target their customers directly via the app, a feature which has been immensely helpful for cafés during the pandemic.”

 

Working during the Pandemic

 

Although both larger and smaller coffee companies alike suffered from the effects of the pandemic, the situation was arguably worse for smaller cafes. Fortunately for the COFE app team, the company began its expansion in the Gulf region only a few months before the pandemic hit. Al-Ebrahim commented: “We had launched in the UAE and Saudi markets only a few months before the outbreak of the pandemic. We benefited a lot from the size of these two larger markets compared to the Kuwait market, in addition to the different lockdown periods that these markets implemented. During this time, we also benefited from our flexible business model, as we added several features that supported our cafe partners that were struggling during this period. Thankfully, and despite the pandemic, we were able to grow more than five times our previous growth rate, in terms of the number of cafe partners and sales."

 

Growth First

 

While discussing the business model behind the COFE application, Al-Ebrahim advised entrepreneurs who are about to launch new projects, especially in the technical sector, to clearly define their visions and goals, noting that there are many factors that are equal to, or may even outweigh, the importance of making a cash profit during the business’s early stages. Al-Ebrahim stressed the importance of continuous growth during the early stages, and that entrepreneurs should not expect to achieve high revenues, especially in periods that require high investment costs needed to build the business’s technological foundation, hire a team of experts, and market and improve the business’s services.

 

Financing

 

On financing, Al-Ebrahim said: "We are always keen to build partnerships that add value to our business, which is why we started with a select group of partners and a simple self-financing model. Next, we moved to the pre-Series A financing stage, and less than a year later, we completed our Series A financing round, which was intended for expansion in the Saudi and Emirati markets. Thankfully, we also recently completed a Series B financing round, which is dedicated to our expansion in the Turkish, Egyptian and English markets, and we are currently aiming to establish our presence in those markets during the next 18 months. I would also like to offer some advice to all young entrepreneurs who are approaching critical stages of financing: when choosing the right business partners, consider factors other than monetary investment. Expansion is essential, and building the strategic relationships that ensure growth is very important."

 

"Let's Talk Business" is Gulf Bank’s newest podcast, created in collaboration with Belmokhba, a local creative content creation and production house. Episodes air on Gulf Bank's digital and social media channels.

 

Gulf Bank's vision is to be the leading Kuwaiti Bank of the Future. The Bank is constantly engaging and empowering its employees as part of an inclusive and diversified workplace in recognition of every employee’s role in delivering customer excellence and serving the community at large. With its extensive network of branches and innovative digital services, Gulf Bank is able to give its customers the choice of how and where to conduct their banking transactions, all while ensuring a simple and seamless banking experience. Gulf Bank is committed to maintaining a robust sustainability program at the community, economic, and environmental levels through sustainability initiatives that are strategically selected to benefit both the country and the Bank. Gulf Bank supports Kuwait Vision 2035 “New Kuwait” and works with the different relevant parties to achieve it.