The Abu Dhabi-based investment firm acquired its stake through an arrangement involving Phoenix Venture Partners Innovation Fund CEIC Limited, the company said on Tuesday. The transaction was completed earlier this year, although the investment amount and percentage ownership were not disclosed.
The announcement follows COFE Tech’s pre-initial public offering funding round, which valued the company at $178 million. The financing was announced on September 1, with the company targeting a listing on the Saudi Exchange by 2029.
KSH Investments participated alongside Phoenix Venture Partners Limited, an Abu Dhabi Global Market-based venture capital fund manager. Its participation came through the investor base of Phoenix Venture Partners Innovation Fund CEIC Limited, according to the announcement.
COFE Tech, formerly known as COFE APP, provides artificial intelligence-enabled procurement and commerce technology to businesses across the Gulf. The company says its platforms serve more than 1,000 enterprise clients operating approximately 3,000 outlets across the UAE, Saudi Arabia and Kuwait.
Its customers include Emirates, Etihad Airways and Al-Futtaim Group, alongside businesses operating in hospitality, retail, food and beverage and other corporate sectors.
Dr Ahmed Mansour, chief executive of KSH Investments, said the investment reflected confidence in the company’s technology and commercial prospects.
“We are delighted to back COFE Tech alongside Phoenix Venture Partners,” Mansour said. “COFE is building transformative technology for commerce and procurement, and we are confident in its growth trajectory as it contributes to strengthening the UAE’s position as a global hub for innovation and the new economy.”
COFE Tech founder and chief executive Ali Al-Ebrahim welcomed the investment, linking the company’s expansion plans to the UAE’s broader economic diversification objectives.
He said the company intended to continue developing procurement and commerce infrastructure supporting businesses, consistent with the ambitions of the We the UAE 2031 vision.
The investment comes as COFE Tech develops two principal enterprise technology businesses, Agentic Procurement and Agentic Commerce, while maintaining its direct-to-consumer e-commerce operations.
Agentic Procurement integrates purchasing, supplier management and replenishment processes into a unified enterprise system. The technology is designed to help companies manage procurement activities through automated workflows and artificial intelligence-driven decision-making.
Agentic Commerce provides businesses with technology infrastructure for customer transactions and commercial operations, including ordering, payments and customer relationship management.
The company describes its approach as agentic artificial intelligence, referring to software systems capable of undertaking defined tasks and making operational decisions within established workflows.
COFE Tech has positioned these enterprise services as its principal expansion businesses after initially operating as a consumer-focused coffee marketplace.
The company’s September financing involved Wa’ed Ventures, the venture capital arm of Saudi Aramco, Aditum Investment Management, Masarrah Investment Company and Alyasra Foods.
That funding round established the $178 million valuation, although the company has not disclosed the amount raised or the proceeds associated with the KSH investment.
The distinction is significant because KSH’s participation predates the announced pre-IPO financing and represents a separate investment transaction rather than an additional disclosed component of the September round.
Phoenix Venture Partners has maintained a relationship with COFE since its pre-Series A investment in 2018. Its continued involvement provides an established investment connection as the company develops its enterprise operations and prepares for a possible stock market flotation.
The proposed 2029 listing remains a corporate target rather than a confirmed transaction. Its completion would depend on market conditions, regulatory requirements and the company’s readiness to undertake a public offering.
COFE Tech’s operating model combines enterprise software with supply-chain services, particularly in beverage procurement. Its platform supports equipment placement, consumables sourcing, delivery and automated inventory replenishment, allowing participating businesses to manage purchasing requirements through integrated systems.
The company operates across three Gulf markets, with its procurement and commerce services supporting customers in aviation, hospitality, restaurants and corporate purchasing.
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