New Delhi: Flash Coffee, a popular coffee chain in Asia-Pacific, has raised US$50 million in an extended Series B funding round led by existing investor White Star Capital. The funding round includes the US$32.8 million raised in June 2022 and involves other existing investors, such as Delivery Hero, Geschwister Oetker, and Conny & Co. The funds will be used to accelerate the company’s profitability and expand its operations across the Asia-Pacific region. Flash Coffee aims to focus on technology and product innovation to improve the sales performance of its existing stores.
David Brunier, founder and CEO of Flash Coffee, expressed confidence in the company’s ability to be profitable on a group level next year, given the ongoing trajectory of topline and profitability improvements and the popularity of their products. Flash Coffee plans to deepen its presence in Indonesia, launching in Surabaya in July 2023, after successfully entering Bandung in July 2022 with 11 outlets. The coffee chain currently operates more than 200 stores in Singapore, Jakarta, Bandung, Surabaya, Bangkok, Hong Kong, and Seoul. Brunier said that all of their 92 stores in Indonesia are profitable, and they are eager to expand further into additional cities to drive sustainable growth.
Despite the success of Flash Coffee, the coffee chain faces increased competition from other coffee chains in the region. For instance, Indonesian unicorn Kopi Kenangan has entered Malaysia with five outlets and plans to enter Singapore, while China’s Luckin Coffee has set up four outlets selling caffeinated drinks in Singapore. Nonetheless, Brunier remains optimistic about the future of Flash Coffee, and the company plans to leverage its technology and innovation to stay ahead of the competition.
Notably, Flash Coffee had a round of layoffs in November 2022 between the funding rounds, impacting staff in Singapore and Indonesia. However, the coffee chain aims to bounce back and continue its growth trajectory with the new funding round.
